Skillz (SKLZ) 10-Q 29 Aug 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	Aug. 15, 2024
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-39243
Entity Registrant Name	SKILLZ INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-4478274
Entity Address, Address Line One	6625 Badura Ave
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89118
City Area Code	415
Local Phone Number	762-0511
Title of 12(b) Security	Class A common stock, par value $0.0001 per share
Trading Symbol	SKLZ
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment flag	false
Central Index Key	0001801661
Entity Fiscal Year Focus	2024
Entity Fiscal Period Focus	Q1
Current Fiscal Year End	--12-31
Class A common stock, par value $0.0001 per share
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		14,001,209
Class B Common Stock
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		3,430,063

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands, shares in Millions	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 290,601	$ 302,028
Restricted cash	10,000	10,000
Accounts receivable, net of allowance for credit losses of $64 and $49 as of March 31, 2024 and December 31, 2023, respectively	5,096	5,942
Prepaid expenses and other current assets	5,915	6,721
Total current assets	311,612	324,691
Property and equipment, net	14,821	14,549
Marketable securities, non-current	447	1,125
Non-marketable equity securities	52,768	52,768
Other non-current assets	2,703	2,693
Total assets	382,351	395,826
Current liabilities:
Accounts payable	11,371	1,712
Operating lease liabilities, current	1,257	1,364
Other current liabilities	48,854	46,782
Total current liabilities	61,482	49,858
Operating lease liabilities, non-current	10,250	10,573
Common stock warrant liabilities, non-current	2	11
Long-term debt, net of current portion	124,345	123,935
Other non-current liabilities	716	960
Total liabilities	196,795	185,337
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock $0.0001 par value; $10.0 million shares authorized — 0 issued and outstanding as of March 31, 2024 and December 31, 2023	0	0
Common stock $0.0001 par value; 31.3 million shares authorized; Class A common stock – 25.0 million shares authorized; 18.1 million and 18.1 million shares issued; 14.6 million and 15.8 million outstanding as of March 31, 2024 and December 31, 2023, respectively; Class B common stock – 6.3 million shares authorized; 3.4 million shares issued and outstanding as of March 31, 2024 and December 31, 2023	1	1
Treasury stock at cost, 3.5 million and 2.3 million as of March 31, 2024 and December 31, 2023, respectively	(19,956)	(13,000)
Additional paid-in capital	1,206,703	1,197,963
Accumulated other comprehensive loss	(1)	(7)
Accumulated deficit	(1,001,191)	(974,468)
Total stockholders’ equity	185,556	210,489
Total liabilities and stockholders’ equity	$ 382,351	$ 395,826
Convertible preferred stock, shares authorized (in shares)	10	10
Convertible preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	31.3	31.3

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Allowance for credit losses	$ 64	$ 49
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	31,300,000	31,300,000
Treasury stock ( in shares)	3,500,000	2,300,000
Class A Common Stock
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	18,100,000	18,100,000
Common stock, shares outstanding (in shares)	14,600,000	15,800,000
Class B Common Stock
Common stock, shares authorized (in shares)	6,300,000	6,300,000
Common stock, shares issued (in shares)	3,400,000	3,400,000
Common stock, shares outstanding (in shares)	3,400,000	3,400,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 25,235,000	$ 44,383,000
Costs and expenses:
Cost of revenue	3,451,000	4,582,000
Research and development	4,624,000	8,881,000
Sales and marketing	20,994,000	34,918,000
General and administrative	23,037,000	28,070,000
Total costs and expenses	52,106,000	76,451,000
Loss from operations	(26,871,000)	(32,068,000)
Interest income (expense), net	112,000	(3,494,000)
Change in fair value of common stock warrant liabilities	9,000	(1,000)
Other income, net	65,000	39,000
Loss before income taxes	(26,685,000)	(35,524,000)
Provision for income taxes	38,000	69,000
Net loss	$ (26,723,000)	$ (35,593,000)
Net loss per share attributable to common stockholders:
Basic (in dollars per share)	$ (1.45)	$ (1.70)
Diluted (in dollars per share)	$ (1.45)	$ (1.70)
Weighted average shares outstanding:
Basic (in shares)	18,461,221	20,883,293
Diluted (in shares)	18,461,221	20,883,293
Other comprehensive income
Change in unrealized gain on available-for-sale investments, net of tax	$ 6,000	$ 997,000
Total other comprehensive income	6,000	997,000
Total comprehensive loss	$ (26,717,000)	$ (34,596,000)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common stock	Treasury Stock	Additional paid-in capital	Accumulated other comprehensive loss	Accumulated deficit
Beginning balance (in shares) at Dec. 31, 2022		21,068,697
Beginning balance at Dec. 31, 2022	$ 278,401	$ 1	$ 0	$ 1,153,071	$ (1,563)	$ (873,108)
Beginning balance (in shares) at Dec. 31, 2022			0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares)		61,124
Issuance of common stock upon exercise of stock options and release of restricted stock units	33			33
Shares repurchased by the Company and held as treasury stock	0
Stock-based compensation	10,548			10,548
Other comprehensive income	997				997
Net loss	(35,593)					(35,593)
Ending balance (in shares) at Mar. 31, 2023		21,129,821
Ending balance at Mar. 31, 2023	254,386	$ 1	$ 0	1,163,652	(566)	(908,701)
Ending balance (in shares) at Mar. 31, 2023			0
Beginning balance (in shares) at Dec. 31, 2023		19,183,046
Beginning balance at Dec. 31, 2023	$ 210,489	$ 1	$ (13,000)	1,197,963	(7)	(974,468)
Beginning balance (in shares) at Dec. 31, 2023	2,300,000		2,314,908
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares)	552	64,357
Shares repurchased by the Company and held as treasury stock (in shares)		(1,209,549)	1,209,549
Shares repurchased by the Company and held as treasury stock	$ (6,956)		$ (6,956)
Stock-based compensation	8,740			8,740
Other comprehensive income	6				6
Net loss	(26,723)					(26,723)
Ending balance (in shares) at Mar. 31, 2024		18,037,854
Ending balance at Mar. 31, 2024	$ 185,556	$ 1	$ (19,956)	$ 1,206,703	$ (1)	$ (1,001,191)
Ending balance (in shares) at Mar. 31, 2024	3,500,000		3,524,457

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating Activities
Net loss	$ (26,723)	$ (35,593)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	395	626
Stock-based compensation	8,740	10,548
Accretion of unamortized debt discount and amortization of debt issuance costs	410	837
Amortization of premium for marketable securities	0	53
Change in fair value of common stock warrant liabilities	(9)	1
Changes in operating assets and liabilities:
Accounts receivable, net	846	(2,367)
Prepaid expenses and other assets	795	(3,276)
Accounts payable	9,659	2,986
Loss contingency accrual	0	151
Operating lease liabilities	(430)	(545)
Other accruals and liabilities	1,921	11,880
Net cash used in operating activities	(4,396)	(14,699)
Investing Activities
Purchases of property and equipment, including internal-use software	(515)	(11,608)
Purchases of marketable securities	(4)	0
Proceeds from sales of marketable securities	688	41,729
Proceeds from maturities of marketable securities	0	37,640
Net cash provided by investing activities	169	67,761
Financing Activities
Principal payments on finance leases obligations	(244)	(282)
Repurchase of common stock	(6,956)	0
Proceeds from exercise of common stock warrants, net of redemptions	0	33
Net cash used in financing activities	(7,200)	(249)
Net change in cash, cash equivalents and restricted cash	(11,427)	52,813
Cash, cash equivalents and restricted cash – beginning of year	312,028	365,436
Cash, cash equivalents and restricted cash – end of period	300,601	418,249
Cash paid during the period for:
Interest	33	63
Income Taxes Paid	$ 0	$ 0

Description of the Business and

Description of the Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business and Basis of Presentation	Description of the Business and Basis of Presentation Business Skillz (the “Company” or “Skillz”) operates a competitive mobile gaming platform, driving the future of entertainment by accelerating the convergence of sports, video games and media. The Company’s principal activities are to develop and support a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity (“Competitions”) to end-users worldwide. Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulation of the SEC. The Company believes the disclosures made are adequate to make the information presented not misleading. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and one subsidiary for which there is an immaterial noncontrolling interest at March 31, 2024. All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments of a normal and recurring nature that are, in the opinion of the Company’s management, necessary for the fair presentation of the results of operations for the interim periods. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the periods presented. Estimates are used in several areas including, but not limited to, stock-based compensation and valuation of common stock warrants. The Company bases these estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities. Actual results could differ materially from these estimates. Revenue Recognition The Company generates substantially all its revenues through its Skillz segment by providing a service to game developers aimed at improving the monetization of their game content. The monetization service provided by Skillz allows developers to offer multi-player competition to their end-users which increases end-user retention and engagement. Skillz provides developers with a software development kit (“SDK”) that they can download and integrate with their existing games. The SDK serves as a data interface between Skillz and the game developers that enables Skillz to provide monetization services to the developer. The Company recognizes revenue for its services in accordance with the FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). See Note 3, Revenue, for additional information. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash, commercial paper, money market funds and U.S government agency securities with maturities of three months or less when purchased. Restricted cash of $10.0 million at March 31, 2024 and December 31, 2023 is primarily associated with the letter of credit for the Company’s former headquarters in San Francisco and cash required to be held by our financial institution. The following table provides a reconciliation of cash, cash equivalents and restricted cash on the condensed consolidated balance sheet at March 31, 2024 and December 31, 2023 that sum to the total of these items reported in the statements of cash flows: March 31, December 31, 2024 2023 Cash $ 19,143 $ 14,968 Money market funds 271,458 287,060 Restricted cash 10,000 10,000 Cash, cash equivalents and restricted cash $ 300,601 $ 312,028 Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash, cash equivalents, restricted cash, and marketable securities. Although the Company deposits its cash with multiple well-established financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. Marketable securities primarily consist of corporate debt securities, asset backed securities and debt instruments issued by foreign governments. The Company limits the amount of credit exposure to any one issuer and monitors the financial condition of the financial institutions on a regular basis. Accounts Receivable, Net Accounts receivable, net, represents amounts recorded for programmatic media campaigns, net of an allowance for credit losses from our advertising revenue customers of our Aarki segment. The allowance for credit losses is recorded as an offset to accounts receivable and changes in such are classified as general and administrative expense in the condensed consolidated statements of operations and comprehensive loss. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when there are specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status and makes judgments about the creditworthiness of customers based on ongoing credit evaluations. The Company also considers customer-specific information, current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. The Company’s provision for credit losses were not material in the three months ended March 31, 2024 and 2023, respectively. The allowance for credit losses was $64.0 thousand and $49.0 thousand at March 31, 2024 and December 31, 2023, respectively. Two customers accounted for 18% and 14% of the accounts receivable balance as of March 31, 2024, respectively. One customer accounted for 12% of the accounts receivable balance as of December 31, 2023. Fair Value Measurement The Company applies fair value accounting for financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the condensed consolidated financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which it would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 — Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 — Unobservable inputs reflecting management’s estimate of assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Certain financial instruments, including debt, are not measured at fair value on a recurring basis in the condensed consolidated balance sheets. The fair value of debt was estimated using primarily level 2 inputs, including quoted market prices or present value of future payments discounted by the market interest rates or the fixed rates based on current rates offered to the Company for debt with similar terms and maturities. Long-Lived Assets Long-lived assets consist of property and equipment with estimable useful lives subject to depreciation and amortization. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. When impairment indicators are identified, the Company assesses its long-lived assets for impairment. Recoverability of an asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset or asset group. On March 15, 2023, the Company completed the purchase of an office building in Las Vegas, Nevada for $11.5 million, with $10.5 million and $1.0 million allocated to building and land components, respectively. The building will be depreciated on a straight-line basis over its estimated useful life of 39 years. The land is not subject to depreciation. The building is being utilized as the Company’s headquarters effective in February 2024. Investments The Company considers all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year are classified as non-current marketable securities. Dividend and interest income are recognized when earned. Marketable securities are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in fair value, excluding credit losses and impairments, are recorded in other comprehensive income in the condensed consolidated statements of operations and comprehensive loss. Fair value is calculated based on publicly available market information or other estimates determined by management. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. To determine credit losses, the Company employs a systematic methodology that considers available quantitative and qualitative evidence. In addition, the Company considers specific adverse conditions related to the financial health of, and business outlook for, the investee. If the Company plans to sell the security or it is more likely than not that the Company will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in other income, net in the condensed consolidated statement of operations and comprehensive loss and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, the Company may incur future impairments. The Company has elected to measure its existing investments in non-marketable equity securities at cost, less impairments, with remeasurements to fair value only upon the occurrence of observable price changes in orderly transactions for the identical or similar securities of the same issuer (“measurement alternative”). This election is reassessed each reporting period to determine whether non-marketable equity securities have a readily determinable fair value, in which case they would no longer be eligible for this election and would be measured at fair value. The Company evaluates its non-marketable equity securities for impairment at each reporting period based on a qualitative assessment that considers various potential impairment indicators. Impairment indicators might include, but would not necessarily be limited to, a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee, a significant adverse change in the regulatory, economic, or technological environment of the investee, a bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar securities for an amount less than the carrying amount of the investments in those securities. If an impairment exists, a loss is recognized in the condensed consolidated statements of operations and comprehensive loss for the amount by which the carrying value exceeds the fair value of the investment. Gains and losses resulting from the remeasurement of non-marketable equity securities, including impairment, are recorded through other income, net in the condensed consolidated statements of operations and comprehensive loss. The Company separately presents investments in non-marketable equity securities within long-term assets on the condensed consolidated balance sheets. The Company identified an impairment indicator related to one of its investments in a privately held company. The Company reviewed the private company’s forecast and noted significant concerns about the private company’s ability to continue as a going concern. As a result, an impairment charge of $2.9 million was recorded in the year ended December 31, 2023. Advertising and Promotional Expense Advertising and promotional expenses are included in sales and marketing expenses within the condensed consolidated statements of operations and comprehensive loss and are expensed when incurred. Advertising expenses, excluding marketing promotions related to the Company’s end-user incentive programs, were $6.0 million and $8.8 million for the three months ended March 31, 2024 and 2023, respectively. Stock-Based Compensation The Company measures and recognizes compensation expense for all stock-based awards based on estimated grant-date fair values recognized over the requisite service period. For awards that vest solely based on a service condition, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period. The compensation expense related to awards with performance conditions is recognized over the requisite service period when the performance conditions are probable of being achieved. The compensation expense related to awards with market conditions is recognized on an accelerated attribution basis over the requisite service period identified as the derived service period over which the market conditions are expected to be achieved and is not reversed if the market condition is not satisfied. See Note 11, Stock-Based Compensation, for more information. The Company accounts for forfeitures as they occur. If an employee stock-based award is canceled without the concurrent grant or offer of a replacement award, the cancellation is treated as a settlement for no consideration and any previously unrecognized compensation cost shall be recognized at the cancellation date. Stock-based awards granted to employees are primarily stock options and restricted stock units. The Company has primarily granted restricted stock units (“RSUs”), which have a service-based (and in certain circumstances, performance-based) vesting condition over a four-year period, to its employees and members of the Board of Directors since the start of 2021. The Board of Directors determines the fair value of each share of underlying common stock based on the closing price of the Company's common stock on the date of the grant. The Company has also issued equity awards in Aarki, Inc. (“Aarki”) to certain key employees of Aarki. See Note 5, Spin-Off Transaction. For awards with market conditions, the Company determines the grant date fair value utilizing a Monte Carlo valuation model, which incorporates various assumptions including expected stock price volatility, expected term, risk-free interest rates, expected date of a qualifying event, expected capital raise percentage and market capitalization milestones. Given the Company’s limited market trading history, it has estimated the volatility of its common stock on the date of grant of awards with market conditions based on the weighted average historical stock price volatility of comparable publicly-traded companies in its industry group. The Company estimated the expected term of its awards with market conditions based on various exercise scenarios, as these awards are not considered “plain vanilla.” The Company utilized a risk-free interest rate based on the U.S. Treasury yield curve in effect at the time of grant. The Company estimated the expected date of a qualifying event, the expected capital raise percentage and the expected achievement date of market capitalization milestones based on management’s expectations at the time of measurement of the award’s value. Interest Income (Expense), Net Interest income (expense), net consisted of the following for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 2023 Interest expense $ (3,772) $ (9,152) Interest income 3,884 5,658 Interest income (expense), net $ 112 $ (3,494) Indirect Tax Liabilities We are subject to indirect taxes such as sales and use tax in the United States and value-add tax in certain foreign jurisdictions, respectively. Indirect tax liabilities are adjusted considering changing facts and circumstances, such as the closing of a tax examination, further interpretation of existing tax law, or new tax law. We recognize changes to our estimate if it is estimable and probable that our position would not be sustainable upon examination by taxing authorities. Although management believes our recorded liabilities are reasonable, no assurance can be given that the final tax outcomes of these matters will not be different from that which our liabilities are based on. To the extent that final tax outcomes of these matters are different than the amounts recorded, such differences could have a material impact on our consolidated financial statements as the Company records related tax reserves as a reduction in revenue, and penalties and interest in general and administrative expenses. Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. Effective beginning in the fourth quarter of 2023, the Company had two operating and reportable segments. See Note 14, Segment Reporting. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures ,” which requires public entities to disclose specific tax rate reconciliation categories, as well as income taxes paid disaggregated by jurisdiction, amongst other disclosure enhancements. The ASU is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments in this ASU should be applied on a prospective basis. Retrospective application is permitted. The Company is evaluating the impact of this ASU on its consolidated financial statements. In March 2024, the FASB issued ASU 2024-01, “ Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards,” which provides illustrative guidance to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of FASB Accounting Standards Codification (FASB ASC) 718, Compensation—Stock Compensation. ASU 2024-01 is effective for annual periods beginning after December 15, 2024 and interim periods within those annual periods with early adoption permitted. The Company currently expects that this ASU will not have a material impact on its consolidated financial statements . In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ,” which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The ASU is required to be applied retrospectively to all prior periods presented in the financial statements once adopted. The Company is evaluating the disclosure requirements related to the new standard.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The following tables present the Company’s revenues, disaggregated by offering, geographical region, and reportable segment for the three months ended March 31, 2024 and 2023. Revenue by geographical region is based on the location where the game developer or advertising customer is headquartered. For more information on revenues presented by reportable segment, see Note 14, Segment Reporting. Three Months Ended March 31, 2024 Skillz Aarki Elimination Consolidated Revenue From Customers: Entry Fee Revenue $ 21,778 $ — $ — $ 21,778 Advertising Revenue — 2,865 (47) 2,818 Other Revenue: Maintenance Fee Revenue 639 — — 639 Total Revenue $ 22,417 $ 2,865 $ (47) $ 25,235 United States $ 21,511 $ 659 $ (47) $ 22,123 Other Countries 906 2,206 — 3,112 Total Revenue $ 22,417 $ 2,865 $ (47) $ 25,235 Three Months Ended March 31, 2023 Skillz Aarki Elimination Consolidated Revenue From Customers: Entry Fee Revenue $ 38,643 $ — $ — $ 38,643 Advertising Revenue — 4,513 (158) 4,355 Other Revenue: Maintenance Fee Revenue 1,385 — — 1,385 Total Revenue $ 40,028 $ 4,513 $ (158) $ 44,383 United States $ 37,332 $ 1,120 $ (158) $ 38,294 Other Countries 2,696 3,393 — 6,089 $ 40,028 $ 4,513 $ (158) $ 44,383 Revenues from Entry Fees The Company applies the five-step model to achieve the core principle of ASC 606. The Company determined that its customer in the provision of its technology platform and services is the game developer. The Company’s ordinary activities consist of providing game developers services through access to its technology platform using the Skillz SDK. The SDK acts as an application programming interface enabling communication of data between Skillz and the game developers, which when integrated with the developer’s game content, facilitates end-user registration into competitions, managing and hosting end-user competition accounts, matching players of similar skill levels, collecting end-user entry fees, distributing end-user prizes, resolving end-user disputes pertaining to their participation in competitions, and running third-party marketing campaigns (collectively, “Monetization Services”). The Company provides Monetization Services to game developers enabling them to offer competitive games to their end-users. These activities are not distinct from each other as the Company provides an integrated service enabling game developers to provide the competitive game service to the end-users, and as a result, they do not represent separate performance obligations. The Company is entitled to a revenue share based on total entry fees for paid competitions, regardless of how they are paid, net of end-user prizes (i.e., winnings from the competitions) and other costs to provide the Monetization Services. Entry fees used to enter paid competitions can include net cash deposits, cash from prior winnings, and end-user incentives. The game developers earn monthly revenue share from end-users, calculated based on end-users’ paid entry fees attributable to their games as a percentage of total entry fees. End-user incentives are not paid for by game developers. In addition, the Company accounts for end-user incentives either as a reduction of revenue or as sales and marketing expenses (as noted below). The Company collects entry fees and related charges from end-users on behalf of game developers. This is done via the end-user’s pre-authorized credit card or PayPal account. The Company withholds its portion of revenue share and administrative costs from these entry fees. The balance is then recorded as a reduction to revenue for the amount owed to the game developer. Therefore, the game developer’s ability and intent to pay the amounts withheld by the Company is not subject to significant judgment or collection risk. Certain of Skillz’ larger developer agreements provide the Company with a right to withhold additional amounts from their revenue share. These amounts relate to game-specific sales and marketing costs incurred by the Company, in its sole discretion, to acquire end-users on behalf of the game developer. The amount and timing of such withholding(s) is (are) uncertain and based on the future performance of the respective developer’s games. Such amounts are recorded as part of the monthly settlement process with the game developer. Accordingly, the Company has included these amounts as a reduction to the revenue share paid to game developers. Revenue is recognized at the time the performance obligation is satisfied by transferring control of the promised service in an amount that reflects the consideration that the Company expects to receive in exchange for the Monetization Services. The Company does not recognize contract assets or contract liabilities as the payment of the transaction price is concurrent with fulfillment of the services. At the time of game completion, the Company has a right to receive payment for services rendered. The Company’s agreements with game developers can generally be terminated for convenience by either party upon thirty days prior written notice, and in certain of the Company’s larger agreements, the game developer, if required by the Company, must continue to make its games available on the platform for a period of up to twelve months. The Company's agreements with certain game developers cannot be terminated by the developer without the Company's approval for a period of at least eighteen months under certain conditions. In accordance with optional exemptions available under Topic 606, the Company does not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less, and (2) contracts for which variable consideration relates entirely to an unsatisfied performance obligation or to an unsatisfied promise to transfer a distinct service that forms a part of a single performance obligation. Games provided by two developer partners accounted for 80% of the Company’s revenue from Monetization Services in the three months ended March 31, 2024 and 2023. End-User Incentive Programs To drive traffic to the platform, the Company provides promotions and incentives to end-users in various forms. Evaluating whether a promotion or incentive is a payment to a customer may require significant judgment. Promotions and incentives, which are consideration payable to customers, are recognized as a reduction of revenue at the later of when revenue is recognized or when the Company pays or promises to pay the incentive. Promotions and incentives recorded as sales and marketing expenses are recognized when we incur the related cost. Our primary end-user incentive is Bonus Cash, which is a promotional incentive that cannot be withdrawn and can only be used by end-users to enter paid-entry fee contests. Bonus Cash used as entry fees for paid Competitions can include newly issued Bonus Cash and / or Bonus Cash returned to end-users from prior winnings. We recognize the entire cost of Bonus Cash as sales and marketing expenses or a reduction of revenue (as discussed below). When Bonus Cash is used towards entry fees for a paid Competition and is returned to an end-user as winnings, we do not record any additional sales and marketing expenses or reductions to revenue. Likewise, if Bonus Cash is returned to an end-user and is used to enter subsequent competitions, which they continue to win, we do not record any additional sales and marketing expenses or reductions to revenue. • Marketing promotions and discounts accounted for as reductions to revenue. These promotions are typically pricing actions in the form of discounts that reduce end-user entry fees. These are offered on behalf of the game developers. Although not required based on the Company’s agreement with its game developers, the Company considers that game developers have a valid expectation that certain incentives will be offered to end-users. The determination of a valid expectation is based on an evaluation of all information reasonably available to game developers regarding the Company’s customary business practices, published policies and specific statements. An example of an incentive for which the game developer has a valid expectation is “Ticketz”, which are virtual currency earned for every competition played based on the amount of the entry fee. Ticketz can be redeemed for prizes, including Bonus Cash. Another promotional incentive is initial deposit Bonus Cash that can be earned in fixed amounts when an end-user makes their first deposit on the Skillz platform. Bonus Cash can only be applied by end-users towards future paid-entry fee competitions and cannot be withdrawn. • Marketing promotions accounted for as sales and marketing expenses. When the Company concludes that game developers do not have a valid expectation that an incentive will be offered, Management records the related cost as sales and marketing expenses. Management’s assessment is based on an evaluation of all information reasonably available to game developers regarding the Company’s customary business practices, published policies and specific statements. These promotions are offered to end-users to draw, re-engage, or generally increase their use of the Skillz platform. An example of this type of incentive is limited-time Bonus Cash offers, which are targeted to specific end-users, typically those who deposit more frequently or have not made a deposit recently, via email or in-app promotions. The Company targets groups of end-users differently, offering specific promotions it believes will best stimulate engagement. Similar to Bonus Cash earned from the redemption of Ticketz or an initial deposit, limited-time Bonus Cash can only be used by end-users to enter future paid entry fee competitions and cannot be withdrawn. The Company also hosts engagement marketing leagues, which run over a period of days or weeks. Prizes are awarded to winners in the form of cash or luxury goods to end-users earning the most medals at the end of the league. End-users accumulate medals by winning Skillz enabled paid entry fee competitions. Skillz determines whether (or not) to run a league, what prizes should be awarded, over what time period the league should run, and to which end-users’ prizes should be paid, all at the Company’s discretion. The parameters vary from one league to the next and are not reasonably known, nor communicated to game developers. League prizes in the form of cash can be withdrawn or applied towards future paid-entry fee competitions. From time to time, the Company issues credits or refunds to end-users that are dissatisfied by the level of service provided by the game developer. There is no contractual obligation for the Company to refund such end-users nor is there a valid expectation by game developers for the Company to issue such credits or refunds to end-users on their behalf. The Company accounts for credits or refunds, which are not recoverable from the game developer, as sales and marketing expenses when incurred. Advertising Revenue The Company offers a technology platform (i.e. demand side platform, “DSP”) to source available advertising space from its network of vendors / suppliers (aka, advertising exchange partners / publishers), which uses a real-time auction process. The revenue from advertising is recognized over time based on the number of impressions as the performance obligation is satisfied. The Company considers itself the agent of its customer(s). This is due to the Company’s involvement in programmatically placing and sourcing advertisements on behalf of customers via a network of third party publishers. The Company does not, at any time, take ownership of advertising inventory being sourced and placed. Via the DSP, if the Company wins the auction and an impression is served, the customer’s advertisement is displayed on the publisher / supplier’s mobile application. Management evaluates whether the performance obligation contained in its insertion order (“IO”) are distinct within the context of a customer contract as defined above. We determined the nature of our performance obligations to customers is to run their programmatic media campaigns by delivering advertisements to their target audience(s). This is carried out based on parameters and strategies outlined by the customer. This performance obligation to the customer incorporates the following: • The DSP and related services (i.e., development of campaign strategy, provision of creative services, campaign flighting, performance monitoring and serving of the ads); and • Sourcing mobile advertising space from the Company’s network of vendors / suppliers. None of these promises are separately identifiable from each other in the contract, as they are integrated with the DSP to provide the customer a combined output. That output empowers the customer to acquire the most valuable space for their mobile advertising campaign based on a pre-established / maximum budget in the IO. Our customers do not dictate where or how the Company sources advertising space. Likewise, the Company does not take ownership of any inventory before the mobile advertisement is served to the customer. The Company recognizes an asset for incremental costs of obtaining a contract with the customer as long as Management expects to recover these costs. Incremental costs are those that would have not been incurred if the contract did not exist. Examples of incremental costs often capitalized are sales commissions whereas examples of costs that would not be included are internal employee salaries, standard benefits, travel costs, and other / general legal costs. Sales commissions are the only incremental contract costs the Company incurs and are paid based on collected revenue based on the recipient’s assigned accounts. As commissions are typically satisfied within one year after an executed contract, the Company applies the practical expedient under ASC 340-40, Other Assets and Deferred Costs: Contracts with Customers. Maintenance Fee Revenue When a player becomes inactive on the platform by not participating in a tournament for six consecutive months, the Company will impose a monthly maintenance fee. This fee is charged to the player and recognized as revenue by the Company beginning from the first the month of inactivity.

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Balance Sheet Components	Balance Sheet Components Note Receivable Note receivable included in other long-term assets on the condensed consolidated balance sheets consisted of the following as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 Note receivable $ 2,000 $ 2,000 On July 7, 2023, the Company entered into a Loan and Security Agreement (together, the “Credit Agreement”) whereby it would lend approximately $2.0 million to Big Run Studio (“Big Run”). The designated rate on the credit facility is 11.5%, with interest-only for the first six months being paid, at Big Run’s option each month, (1) in cash or (2) in-kind and compounded monthly to the principal. The interest-only period may be extended in six month increments upon mutual written agreement between Big Run and Skillz. After the interest-only period, principal and interest shall be payable monthly in equal installments. The default rate is 16.5% per annum. Late charges will be assessed at 5% of the payment amount overdue if not paid within five For the three months ended March 31, 2024, the Company recognized $0.1 million of interest income related to this Credit Agreement. See Note 16, Subsequent Events. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 Credit card processing reserve $ 1,000 $ 1,000 Prepaid expenses 3,809 4,364 Other current assets 1,106 1,357 Prepaid expenses and other current assets $ 5,915 $ 6,721 Property and Equipment, net Property and equipment consisted of the following as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 Land $ 980 $ 980 Building 12,529 10,541 Capitalized internal-use software 9,113 9,113 Computer equipment and servers 1,782 1,410 Furniture and fixtures 329 278 Leasehold improvements 117 117 Construction in progress — 1,745 Total property and equipment 24,850 24,184 Accumulated depreciation and amortization (10,029) (9,635) Property and equipment, net $ 14,821 $ 14,549 Property and equipment, net and operating lease right-of-use assets by geography was as follows: March 31, December 31, 2024 2023 United States $ 14,462 $ 14,186 Other countries 359 363 Total $ 14,821 $ 14,549 Other Current Liabilities Other current liabilities consisted of the following as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 Accrued sales and marketing expenses $ 2,430 $ 2,275 Accrued compensation 2,988 2,070 Accrued publisher fees 3,024 3,607 End-user liability, net 6,154 6,590 Accrued developer revenue share 1,037 1,086 Short-term lease obligations 779 831 Accrued legal expenses 7,625 7,949 Accrued interest expenses 3,877 554 Indirect tax liabilities 12,052 11,206 Accrued operating expenses 8,133 9,715 Other 755 899 Other current liabilities $ 48,854 $ 46,782

Spin-Off Transaction

Spin-Off Transaction	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Spin-Off Transaction	Spin-Off Transaction On August 31, 2023, in order to more directly incentivize the key employees of the Company’s subsidiary, Aarki, the Company made the determination to allow certain key employees of Aarki to receive equity awards in Aarki. On a fully diluted basis, the awards represent approximately 20% of the ownership of Aarki. On March 12, 2024, the Company authorized the issuance of equity awards in Aarki, and awards were issued in March 2024. As of March 31, 2024, vested awards constituted an immaterial non-controlling interest in Aarki. Previously issued Skillz equity awards have been surrendered by the Aarki employees. In connection with the spin-off transaction, the Company provided Aarki $5.0 million to fund its operations in exchange for Series A Preferred Stock of Aarki. The funding transaction was eliminated in consolidation and was used to properly allocate working capital to the business. Aarki is designated as an unrestricted subsidiary under the indenture governing the Company’s 10.25% Secured Notes due 2026.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements As of March 31, 2024 and December 31, 2023, the recorded values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of the instruments. Cash and money market funds are classified within Level 1 of the fair value hierarchy. Highly liquid investments such as commercial papers and corporate bonds are classified within Level 2 of the fair value hierarchy. Assets measured at fair value on a recurring basis consisted of the following as of March 31, 2024 and December 31, 2023: Fair Value Measurements as of March 31, 2024 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 271,458 $ — $ — 271,458 Available-for-sale investments Asset-backed securities $ — $ 447 $ — 447 Total assets $ 271,458 $ 447 $ — $ 271,905 Fair Value Measurements as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 287,060 $ — $ — $ 287,060 Available-for-sale investments Asset-backed securities — 1,125 — 1,125 Total assets $ 287,060 $ 1,125 $ — $ 288,185 Available-for-Sale Investments Available-for-sale investments were classified within Level 1 or Level 2 because the Company uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. The market values of Level 2 investments are determined based on observable inputs for the securities other than quoted prices, such as interest rates, yield curves, and credit spreads, or quoted prices for identical or similar securities in markets that are not considered active. There were no transfers between levels during the periods presented.

Investments

Investments	3 Months Ended
	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Investments	Investments Investment Components Investments consisted of the following as of March 31, 2024 and December 31, 2023: As of March 31, 2024 Adjusted Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities - Marketable Securities - Asset-backed securities $ 448 $ — $ (1) $ 447 $ — $ — $ 447 Money market funds 271,458 — — 271,458 271,458 — — Total investments $ 271,906 $ — $ (1) $ 271,905 $ 271,458 $ — $ 447 As of December 31, 2023 Adjusted Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities - Marketable Securities - Asset-backed securities $ 1,132 $ — $ (7) $ 1,125 $ — $ — $ 1,125 Money market funds 287,060 — — 287,060 287,060 — — Total investments $ 288,192 $ — $ (7) $ 288,185 $ 287,060 $ — $ 1,125 Non-marketable equity securities are investments in privately held companies without readily determinable fair values. We have accounted for these investments using the measurement alternative. Under the measurement alternative, the equity investment is initially recorded as its allocated cost, but the carrying value may be adjusted through earnings upon an impairment or when there is an observable price change involving the same or a similar investment with the same issuer. The carrying value of the Company’s investments without readily determinable fair values was $52.8 million as of March 31, 2024 and December 31, 2023, respectively, and was classified within “Non-marketable equity securities” in the condensed consolidated balance sheets. During the year ended December 31, 2023, the Company identified an impairment related to one of its investments in a privately held company. The Company reviewed the private company’s forecast and noted significant concerns about the private company’s ability to continue as a going concern. As a result, an impairment charge of $2.9 million was recorded in 2023. The Company did not record any other adjustments to the carrying value of its non-marketable equity securities accounted for under the measurement alternative and did not recognize any gains or losses related to the sale of non-marketable equity securities in the three months ended March 31, 2024 and 2023. Unrealized Losses on Marketable Securities Marketable securities with continuous unrealized losses for less than 12 months and 12 months or more and their related fair values were not material as of March 31, 2024 and December 31, 2023. Marketable Securities Maturities Adjusted Cost Basis Estimated Fair Value March 31, 2024 Due in one year or less $ — $ — Due after one year through five years 448 447 Total $ 448 $ 447

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consisted of the following as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 2021 Senior Secured Notes, non-current $ 129,671 $ 129,671 Unamortized discount and issuance costs (5,326) (5,736) Long-term debt, non-current $ 124,345 $ 123,935 2021 Senior Secured Notes On December 20, 2021, the Company entered into $300 million of 10.25% secured notes in a private placement to certain institutional buyers. The secured note is guaranteed by the Company’s domestic restricted subsidiaries. The interest is payable semiannually on June 15 and December 15 of each year, beginning on June 15, 2022. At issuance, the effective interest rate on the notes was 12.14%. The notes will mature on December 15, 2026 unless repurchased or redeemed earlier. On September 1, 2022, the Company repurchased $10.5 million of the principal amount of the 2021 Senior Secured Notes at 69.5% for $7.3 million plus accrued interest of $0.2 million. This resulted in a gain on extinguishment of debt of $2.6 million as the notes were redeemed for total consideration below par value of the notes as well as the write-off of unamortized debt issuance costs and discounts. On April 13, 2023, the Company repurchased approximately $159.8 million of its senior secured notes. In connection with the repurchase, the Company’s recognized a gain on extinguishment of $15.2 million on the consolidated condensed statements of operations. The gain primarily reflected the payment discounts as the notes were redeemed for total consideration below the par value of the notes as well as the write-off of unamortized debt issuance costs and discounts. After giving effect to the 2022 and the 2023 open market repurchases, as of March 31, 2024, $129.7 million of the senior secured notes remained outstanding and the effective interest rate is 12.09%. The secured notes contain customary covenants restricting the Company’s ability to incur debt, incur liens, make distributions to stockholders, make certain transactions with the Company’s affiliates, as well as certain other financial covenants. The Company was in compliance with all covenants as of March 31, 2024. In accounting for the senior secured notes, unamortized discount and issuance costs were deducted from the carrying value in the condensed consolidated balance sheets. Issuance costs will be recognized as interest expense over the five-year term of the senior secured notes. The senior secured notes are classified as Level 2 financial instruments, and the fair value of the notes is presented for disclosure purposes only. The Company determined the fair value of the notes was $108.6 million as of March 31, 2024 based on secondary market quotes. Amortization of debt issuance costs and accretion of debt discounts included in interest expense totaled $0.4 million and $0.8 million for the three months ended March 31, 2024 and 2023, respectively. The following table outlines maturities of the principle related to the Company’s long-term debt as of March 31, 2024: Amount 2023 $ — 2024 — 2025 — 2026 129,671 Total $ 129,671

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Matters The Company is a party to certain claims, suits, and proceedings which arise in the ordinary course and conduct of its business and has certain unresolved claims pending, the outcomes of which are not determinable at this time. The Company records a liability when it believes that it is probable that a loss will be incurred and the amount can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be reasonably estimated, the Company discloses the possible loss or range of loss. In the Company’s opinion, resolution of pending matters, other than as disclosed herein, is not expected to have a material adverse impact on the results of operations, cash flows, or the Company’s financial position, as of March 31, 2024. Given the unpredictable nature of legal proceedings, there is a reasonable possibility that an unfavorable resolution of one or more such proceedings could in the future materially affect the results of operations, cash flows, or financial position in a particular period. However, based on the information known by the Company, except as set forth herein, any such amount is either immaterial or it is not possible to provide an estimated range of any such possible loss. The Company records legal fee expenses associated with such matters when the relevant services are provided. On May 15, 2019, a former employee of the Company filed a suit against the Company in the San Francisco Superior Court in California for claims including breach of contract, retaliation and wrongful termination. The case was tried in August and September 2021. The jury found in favor of the former employee and rendered a verdict against the Company for $11.6 million in compensatory damages, and the Company recorded a loss contingency accrual of $7.1 million and corresponding general and administrative expenses in such amount in the third quarter of 2021. In April 2022, the judge in the case determined, in light of the Company’s post-verdict motions, that the instructions given to the jury at trial were defective. Accordingly, the judge ordered a new trial on damages or, alternatively, permitted the plaintiff to accept a reduced verdict in the amount of $4.4 million, which the plaintiff subsequently levied from the Company’s bank account. On May 25, 2022, the Company filed an appeal from the judgment seeking, in part, entry of judgment in the Company’s favor notwithstanding the verdict. The plaintiff accepted the reduced verdict, and filed an appeal from the judgment on June 7, 2022, seeking in part, to reinstate the jury’s original verdict (or an award less than the original verdict but greater than $4.4 million final judgement) and challenge the trial court’s conclusion that stock options are not “wages,” which was the basis for dismissing his wrongful termination and retaliation claims. Skillz filed its response and reply brief on July 7, 2023. On April 8, 2024, the Court of Appeals issued its decision, affirming the judgment of $4.4 million but adding an additional $2.3 million for a total award of $6.7 million. The Court of Appeals also affirmed the dismissal of the wrongful termination and retaliation claims, holding that stock options are not wages. The Court of Appeal’s decision became final, non-appealable and enforceable on May 20, 2024. See Note 16, Subsequent Events. In March 2024, the Company sued Papaya Gaming, Ltd. and Papaya Gaming, Inc. (collectively, “Papaya”) in the United States District Court for the Southern District of New York alleging false advertising under the Lanham Act and unfair business practices related to Papaya's marketing of its mobile games and its deployment of algorithmic competitors ("bots") in its games. In June 2024, the Court denied Papaya's motion to dismiss the Company’s complaint in its entirety. In August 2024, Papaya asserted counterclaims against the Company alleging that the Company also engaged in false advertising and unfair business practices for purportedly allowing bots in games on the Company’s platform, defamation for the Company’s involvement in a non-profit organization that collected and published data related to customer complaints to state attorney generals related to Papaya’s and other companies’ alleged fraudulent bot use, and trademark and copyright infringement of design elements of certain games, among other things. The Company has not yet responded to Papaya's counterclaims, but intends to vigorously defend the Company against all such counterclaims. Indirect Taxes The Company is subject to indirect taxes, including sales and use tax in the United States and value-add tax in certain foreign jurisdictions. The Company has indirect tax liabilities totaling $12.1 million and $11.2 million as of March 31, 2024 and December 31, 2023, respectively, associated with indirect taxes based on currently available information and assumptions that the Company believes are reasonable based on an evaluation of relevant factors. The Company’s application of the revenue code for indirect taxes in certain jurisdictions, including those within the United States, may be challenged by taxing authorities in those jurisdictions. Any associated assessments may result in additional tax liabilities. The Company does not currently anticipate that any such assessments will result in a material increase in the liabilities. See Note 2, Summary of Significant Accounting Policies.

Share Repurchase Program

Share Repurchase Program	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Share Repurchase Program	Share Repurchase Program On August 18, 2023, the Board of Directors authorized a share repurchase program (the "Share Repurchase Program”) pursuant to which the Company may repurchase, at any time or from time to time, but for a period no longer than one year from the date of authorization, shares of the Company’s Class A common stock up to an aggregate purchase price of $65.0 million. Such purchases may be made on the New York Stock Exchange or any other national securities exchange on which the common stock is then traded. The Share Repurchase Plan is pursuant to a plan pursuant to Rule 10b5-1 promulgated under the Exchange Act and/or pursuant to accelerated share repurchase arrangements, tender offers, privately negotiated transactions or otherwise.

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock Based Compensation	Stock-Based Compensation The following table summarizes stock-based compensation expense recognized for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Cost of revenue $ 2 $ — Research and development 147 1,206 Sales and marketing 2,011 1,904 General and administrative 6,580 7,438 Total stock-based compensation expense $ 8,740 $ 10,548 Equity Incentive Plans Skillz Inc. 2020 Omnibus Incentive Plan In December 2020, the Board of Directors of the Company adopted the Skillz Inc. 2020 Omnibus Incentive Plan (the “2020 Plan”). The 2020 Plan became effective upon consummation of the FEAC business combination and succeeds the Company’s legacy equity incentive plans. Under the 2020 Plan, the Company may grant stock-based awards to purchase or directly issue shares of common stock to employees, directors and consultants. Options are granted at a price per share equal to the fair market value of the underlying common stock at the date of grant. Options granted are exercisable over a maximum term of 10 years from the date of grant. RSUs are also granted under the 2020 Plan. These awards typically have a cliff vesting period of one year and continue to vest quarterly thereafter. The 2020 Plan also permits the Company to grant stock-based awards with performance or market conditions. In connection with the closing of the FEAC business combination, the Company entered into certain option agreements that include vesting conditions contingent upon the attainment of volume weighted average price targets related to the Company’s Class A common stock on the NYSE. The 2020 Plan permits the Company to deliver up to 6,465,771 shares of common stock pursuant to awards issued under the 2020 Plan, consisting of 750,000 shares which may be of Class A and/or Class B common stock, 4,597,406 shares of Class A common stock and 1,118,365 shares of Class B common stock. The total number of shares of Class A common stock and Class B common stock that will be reserved and that may be issued under the 2020 Plan will automatically increase on the first trading day of each calendar year, beginning with calendar year 2021, by a number of shares equal to 5% of the total number of shares of Class A common stock and Class B common stock, respectively, outstanding on the last day of the prior calendar year. Stock Options and Restricted Stock Units Stock option and RSU activity during the three months ended March 31, 2024 is as follows (in thousands, except for share, per share, and contractual term data): Options Outstanding Restricted Stock Units Number of Number of Weighted- Weighted- Aggregate Number of Plan shares outstanding Weighted-Average Grant Date Fair Value per share Balance at December 31, 2023 2,152,407 701,833 $ 303.73 6.95 $ 91 2,497,773 $ 14.93 Additional shares authorized 903,395 — — Granted (300,743) — — 300,743 6.36 Exercised/Vested — (552) 3.07 (63,805) 27.53 Cancelled/Forfeited/Expired 418,532 (4,308) 15.32 (414,224) 18.25 Balance at March 31, 2024 3,173,591 696,973 $ 305.75 6.71 $ 94 2,320,487 $ 12.88 Exercisable at December 31, 2023 98,469 $ 9.52 4.56 $ 90 Exercisable at March 31, 2024 95,745 9.60 4.30 93 Unvested at December 31, 2023 603,364 351.75 6.95 1 Unvested at March 31, 2024 601,228 352.92 6.71 1 The number of RSUs granted and outstanding does not include 0.6 million performance-based RSUs which the Company issued as of March 31, 2024, as the performance-based RSUs are not deemed granted for accounting purposes because the performance-based RSUs are subjected to performance criteria established by the Company’s Board at the recommendation of its Compensation Committee. Additionally, the stock option and RSU activity presented in the table above does not include activity related to the 2022 CFO Restricted Stock Unit and Performance award, 2022 CEO Restricted Stock Unit and Performance Award, 2021 CEO Performance Award and Founders’ Option Agreements, described below. As of March 31, 2024, unrecognized stock-based compensation expense related to unvested stock options, restricted common stock, RSUs, performance-based RSUs and performance stock units was $48.0 million. Restricted stock generally vests over periods of one The aggregate intrinsic value of options exercised was not material during the three months ended March 31, 2024 and 2023. 2022 CFO Restricted Stock Unit and Performance Award The Company granted the Company’s President and Chief Financial Officer (“CFO”) a restricted stock unit award covering shares of the Class A common stock with a grant date value equal to $15.0 million, comprised of 0.5 million restricted stock units. These grants vest 25% on the first anniversary of CFO’s start date and the remainder vest in 12 substantially equal quarterly installments, in each case subject to continuous service with the Company through each applicable vesting date, provided that the grant vests in full if the CFO is terminated without cause following a change of control of the Company. On September 30, 2022, the restricted stock unit award was re-measured based on the fair value of an underlying share of the Class A common stock, which was equal to $10.7 million, and the Company then reclassified the liability classified award to additional paid-in capital as the number of shares became fixed. During the three months ended March 31, 2024, the Company recognized $0.3 million in compensation expense related to this grant. In addition, the Company issued to the CFO a performance stock unit award covering shares of the Class A common stock with a fair value of $5.0 million as of the issuance date, comprised of 0.2 million performance stock units. Such award vests over four one-year periods, with pro-rata vesting for the first and last performance periods, in each case subject to continuous service with the Company through each applicable vesting date and the attainment of certain corporate performance goals. The Company did not award any performance stock units for the year ended December 31, 2023 as the performance goals were not achieved. On January 5, 2024 the CFO informed the Company of his decision to step down from his position. The unvested portion of the grants awarded under the 2022 CFO Restricted Stock Unit and Performance Award were all forfeited as of March 31, 2024. 2022 CEO Restricted Stock Unit and Performance Award The Company granted the Company’s Chief Executive Officer (“CEO”) a restricted stock unit award covering shares of the Class A common stock with a grant date value equal to $25.9 million, comprised of 1.4 million restricted stock units. Such grant vests 25% on the first anniversary of January 1, 2023 and the remainder vests in 12 substantially equal quarterly installments, in each case subject to continuous service with the Company through each applicable vesting date, provided that the grant vests in full if the CEO is terminated without cause following a change of control of the Company. During the three months ended March 31, 2024, the Company recognized $0.9 million in compensation expense related to this grant. As of March 31, 2024, the unrecognized stock-based compensation cost related to the non-vested CEO restricted stock unit award was $9.7 million. The Company expects this cost to be recognized over a remaining weighted-average period of approximately 3.7 years. In addition, the Company issued to the CEO a performance stock unit award covering shares of the Class A common stock with a fair value of $8.6 million as of the issuance date, comprised of 0.5 million performance stock units. Such award vests over four one-year periods, in each case subject to continuous service with the Company through each applicable vesting date and the attainment of certain corporate performance goals. As of March 31, 2024, the award was not considered granted for accounting purposes as the performance goals have not been achieved. Founders’ Option Agreements In December 2020, the Company entered into option agreements with each of the CEO and Chief Strategy Officer (“CSO”) (the “Option Agreements”) awarding them options to purchase (i) 498,000 shares of Class B common stock to the CEO and (ii) 102,000 shares of Class A common stock to the CSO with an exercise price of $353.60. The options will vest in three equal increments as follows (i) one-third (1/3) of the options shall vest and become exercisable as of the date, following the grant date, that the volume weighted average price on the NYSE over a ten (10) trading day period of underlying Class A common stock (“VWAP”) equals or exceeds 3.0x the VWAP of the shares as of the Closing Date (as defined in the Options Agreements), (ii) one-third (1/3) of the options shall vest and become exercisable as of the date, following the grant date, that the VWAP of the shares equals or exceeds 4.0x the VWAP of the shares as of the Closing Date; and (iii) one-third (1/3) of the options shall vest and become exercisable as of the date, following the grant date, that the VWAP of the shares equals or exceeds 5.0x the VWAP of the shares as of the Closing Date. The $93.4 million grant date fair value of the Founders’ Options was estimated using a model based on multiple stock price paths developed through the use of a Monte Carlo simulation that incorporates into the valuation the possibility that the market condition targets may not be satisfied. The significant inputs to the valuation included the Class A stock price and the risk-free interest rate as of the grant date, as well as the estimated volatility of the Class A common stock. For the three months ended March 31, 2024, the Company recognized $4.8 million, in compensation expense related to these grants. As of March 31, 2024, the unrecognized stock-based compensation cost related to the Option Agreements was $29.5 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.62 years. Employee Stock Purchase Plan In June 2021, the Company commenced its first offering period under the Skillz, Inc. Employee Stock Purchase Plan (the Employee Stock Purchase Plan), which assists employees in acquiring a stock ownership interest in the Company and encourages them to remain in the employment of the Company. The Employee Stock Purchase Plan is intended to qualify under Section 423 of the Internal Revenue Code. The Employee Stock Purchase Plan permits eligible employees to purchase common stock at a discount through payroll deductions during specified offering periods. No employee may purchase more than $25.0 thousand worth of stock in any calendar year. The price of shares purchased under the Employee Stock Purchase Plan is equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. The total Employee Stock Purchase plan expense for the three months ended March 31, 2024 and 2023 were not material.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s provision for income taxes was $38.0 thousand and $69.0 thousand for the three months ended March 31, 2024 and 2023, respectively. This represents an effective tax rate of (20)% for both periods. The Company has historically been in an overall loss position and is only subject to foreign and state taxes. The Company maintains a full valuation allowance for all of its net deferred tax assets. The March 31, 2024 effective tax rate differs from the federal statutory rate due to the change in need for valuation allowance, as well as due to foreign and state taxes.

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party TransactionsWith the exception of Executive grants as discussed in Note 11, Stock-Based Compensation, the Company did not have any material related party transactions in the three months ended March 31, 2024 and 2023

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting Effective beginning in the fourth quarter of 2023, the Company had two operating and reportable segments. In accordance with ASC 280, Segment Reporting, in the event of a change in the structure of a company’s organization that causes the composition of its reportable segments to change, the corresponding information for earlier periods is to be restated. The disclosures below reflect the change in the Company’s reportable segments (from one segment to two segments) for the first quarters of fiscal years 2024 and 2023. A description of the Company’s two reportable segments, including products and services, is as follows. Skillz Skillz is a leading eSports gaming platform. Its platform enables game developers to monetize their content through multi-player competition. By utilizing Skillz’ monetization services, developers can enhance their end-user experiences by enabling them to compete in head-to-head matches, live tournaments, leagues, and charity events while also increasing player retention through referral bonus programs, loyalty perks, on-system achievements, and rewards / prizes. Skillz provides its monetization services to developers via a downloadable software development kit (“SDK”). The SDK integrates with developers’ existing games. Monetization services include end-user registration, player matching, fraud & fair play monitoring, and settlement for player billings and payouts. Skillz is headquartered in Las Vegas, NV with offices in Los Angeles, CA, Canada, and India. Aarki Aarki is an AI company that delivers advertising solutions to drive revenue growth for mobile app developers. Aarki enables brands to effectively engage audiences in a privacy-first world by using billions of contextual bidding signals coupled with proprietary machine learning and behavioral models. Aarki works with hundreds of advertisers globally and manages approximately 5 million mobile ad requests per second from over 10 billion devices. Aarki is headquartered in San Francisco, CA, with offices in Europe, the Middle East and Asia. The Company’s corporate operations primarily support Skillz and are included in the results for the Skillz segment. Likewise, Aarki has its own corporate operations, which are included in the Aarki segment. The CODM evaluates the performance of the Company’s segments based on Segment Revenue and Segment Adjusted EBITDA. Segment Adjusted EBITDA is indicative of operational performance and is monitored by the CODM to evaluate past performance and identify actions required to improve profitability. The CODM does not review information regarding total assets on a reportable segment basis. The following tables provide summarized information about the Company’s operations by reportable segment and a reconciliation of Segment Adjusted EBITDA to Net Loss in the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 2023 Revenue Skillz Segment $ 22,417 $ 40,028 Aarki Segment 2,865 4,513 Elimination (47) (158) Total Revenue $ 25,235 $ 44,383 Segment Adjusted EBITDA Skillz Segment $ (15,691) $ (19,682) Aarki Segment (2,045) (1,212) Total Segment Adjusted EBITDA $ (17,736) $ (20,894) Items to reconcile Segment Adjusted EBITDA to Net Loss: Interest income (expense), net $ 112 $ (3,494) Stock-based compensation (8,740) (10,548) Change in fair value of warrant liability 9 (1) Provision for income taxes (38) (69) Depreciation and amortization (395) (626) Other income, net 65 39 Net Loss $ (26,723) $ (35,593)

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share The Company computes net loss per share of the Class A common stock and Class B common stock using the two-class method required for participating securities. Basic and diluted loss per share are the same for each class of common stock because they are entitled to the same liquidation and dividend rights. The effect of potentially dilutive common shares is reflected in diluted earnings per share by application of the treasury stock method. The following table sets forth the computation of basic and diluted loss per Class A common stock and Class B common stock (in thousands, except for share and per share data): Three Months Ended March 31, 2024 2023 Numerator: Net loss – basic and diluted $ (26,723) $ (35,593) Denominator: Weighted average common shares outstanding – basic and diluted 18,461,221 20,883,293 Net loss per share attributable to common stockholders – basic and diluted $ (1.45) $ (1.70) The following outstanding common stock equivalents were considered antidilutive, and therefore, excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented (share numbers are not in thousands). As of March 31, 2024 2023 Common stock warrants 226,786 226,786 Common stock options 696,973 992,954 Performance stock units 567,604 — Restricted stock units 2,320,487 2,650,360 Total 3,811,850 3,870,100

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Former Employee Litigation The resolution on May 20, 2024 of the suit brought by a former employee of the Company on May 15, 2019 resulted in a $3.5 million reduction in litigation expense which was recorded in the fourth quarter of 2023. See Note 9, Commitments and Contingencies. Skillz vs AviaGames Settlement On February 9, 2024, a federal jury in San Jose, California issued a verdict in favor of Skillz in a patent infringement action Skillz brought against a privately-held mobile gaming company, AviaGames, Inc. (“AviaGames”), on April 5, 2021 (“Patent Case”). The jury found in favor of Skillz on all issues, determining AviaGames willfully infringed Skillz’s U.S. Patent No. 9,649,564, entitled “Peer-to-Peer Wagering Platform” (the “‘564 patent”) and awarding Plaintiff Skillz Platform Inc. (“Skillz”) its full damages request of $42.9 million. After the jury verdict issued, Skillz requested certain post-trial relief, including that the Court permanently enjoin AviaGames from continuing to infringe the ‘564 patent, award Skillz its attorneys’ fees due to the exceptional nature of the case, and treble the damages awarded by the jury. In addition, Skillz, along with game developer Big Run Studios, Inc. (“Big Run”), brought a separate case against AviaGames for false advertising, copyright infringement, and violations of California’s state unfair competition law in federal court in San Francisco, California (“Unfair Competition Case”). On April 13, 2024, Skillz, Big Run, and AviaGames entered into a settlement agreement with respect to both the Patent Case and Unfair Competition Case pending against AviaGames. In exchange for dismissal of both actions and other settlement terms, AviaGames agreed to pay Skillz and Big Run a total of $80 million. Skillz and Big Run have collectively received $50 million from AviaGames pursuant to the settlement agreement. Of the $50 million received, Skillz was entitled to $46 million and Big Run was entitled to $4 million. Beginning in March of 2025, AviaGames is required to pay Skillz $7.5 million annually for a four-year period as royalty payments for AviaGames’ license of the ’564 patent and its patent family. Hanna vs. Paradise, et al. In March 2024, an alleged stockholder filed a putative derivative complaint, Hanna v. Paradise, et al., No. 2024-0228-KSJM, in the Delaware Court of Chancery, purportedly on behalf of the Company against certain of the Company’s current and former officers, directors, and stockholders. The complaint alleges breaches of fiduciary duties, aiding and abetting breaches of fiduciary duties, and unjust enrichment arising out of the Company’s March 2021 underwritten public offering. The complaint asserts that certain of the director and officer defendants breached fiduciary duties to the Company by allegedly inappropriately selling stock as part of the public offering; that the stockholder defendants aided and abetted these alleged breaches of fiduciary duties; and that all defendants were unjustly enriched by their sales in the public offering. The complaint seeks unspecified damages and restitution for the Company from the defendants and the payment of costs and attorneys’ fees. Defendants moved to dismiss the complaint on June 6, 2024, and briefing on the motion should be complete by the end of August 2024. The Court is likely to schedule oral arguments for a date after the briefing is complete. Skillz vs. Voodoo SAS et. al. In July 2024, the Company sued Voodoo SAS and two affiliate entities, Esport Newco SAS and Esport Newco US Corp. (collectively, "Voodoo") in the United States District Court for the Southern District of New York alleging false advertising under the Lanham Act and unfair business practices related to Papaya's marketing of its mobile games and its deployment of algorithmic competitors ("bots") in its games. Voodoo has not yet responded to the Company’s complaint. Note Receivable On April 12, 2024, the Company and Big Run Studio entered into a Side Letter Agreement providing that a portion of the AviaGames settlement funds allocated to Big Run Studio be utilized to repay the outstanding principal amount and accrued interest under the Loan and Security Agreement totaling $2.0 million. On May 3, 2024, Big Run Studio repaid all of the outstanding principal amount and accrued interest under the Loan and Security Agreement. Purchase of Treasury Stock On August 18, 2023, the Board has determined that it is advisable and in the best interests of the Company and its stockholders to authorize the Company to repurchase, at any time or from time to time but for a period no longer than one year from the date hereof, shares of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”), having an aggregate purchase price not to exceed $65.0 million (a) on the New York Stock Exchange (the “NYSE”) or any other national securities exchange on which the Common Stock is then traded, (b) pursuant to a plan effected pursuant to Rule 10b5-1 (a “Rule 10b5-1 Plan”) promulgated under the Exchange Act, and/or (c) pursuant to accelerated share repurchase arrangements, tender offers, privately negotiated transactions or otherwise (the “Share Repurchase Program”). As of August 15, 2024 the Company has repurchased 4.1 million shares of its common stock at an average price of $5.78/share for a total cost (including commission) of $23.9 million.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net loss	$ (26,723)	$ (35,593)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulation of the SEC. The Company believes the disclosures made are adequate to make the information presented not misleading. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and one subsidiary for which there is an immaterial noncontrolling interest at March 31, 2024. All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments of a normal and recurring nature that are, in the opinion of the Company’s management, necessary for the fair presentation of the results of operations for the interim periods. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the periods presented. Estimates are used in several areas including, but not limited to, stock-based compensation and valuation of common stock warrants. The Company bases these estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities. Actual results could differ materially from these estimates.
Revenue Recognition	Revenue Recognition The Company generates substantially all its revenues through its Skillz segment by providing a service to game developers aimed at improving the monetization of their game content. The monetization service provided by Skillz allows developers to offer multi-player competition to their end-users which increases end-user retention and engagement. Skillz provides developers with a software development kit (“SDK”) that they can download and integrate with their existing games. The SDK serves as a data interface between Skillz and the game developers that enables Skillz to provide monetization services to the developer. The Company recognizes revenue for its services in accordance with the FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). See Note 3, Revenue, for additional information. Revenues from Entry Fees The Company applies the five-step model to achieve the core principle of ASC 606. The Company determined that its customer in the provision of its technology platform and services is the game developer. The Company’s ordinary activities consist of providing game developers services through access to its technology platform using the Skillz SDK. The SDK acts as an application programming interface enabling communication of data between Skillz and the game developers, which when integrated with the developer’s game content, facilitates end-user registration into competitions, managing and hosting end-user competition accounts, matching players of similar skill levels, collecting end-user entry fees, distributing end-user prizes, resolving end-user disputes pertaining to their participation in competitions, and running third-party marketing campaigns (collectively, “Monetization Services”). The Company provides Monetization Services to game developers enabling them to offer competitive games to their end-users. These activities are not distinct from each other as the Company provides an integrated service enabling game developers to provide the competitive game service to the end-users, and as a result, they do not represent separate performance obligations. The Company is entitled to a revenue share based on total entry fees for paid competitions, regardless of how they are paid, net of end-user prizes (i.e., winnings from the competitions) and other costs to provide the Monetization Services. Entry fees used to enter paid competitions can include net cash deposits, cash from prior winnings, and end-user incentives. The game developers earn monthly revenue share from end-users, calculated based on end-users’ paid entry fees attributable to their games as a percentage of total entry fees. End-user incentives are not paid for by game developers. In addition, the Company accounts for end-user incentives either as a reduction of revenue or as sales and marketing expenses (as noted below). The Company collects entry fees and related charges from end-users on behalf of game developers. This is done via the end-user’s pre-authorized credit card or PayPal account. The Company withholds its portion of revenue share and administrative costs from these entry fees. The balance is then recorded as a reduction to revenue for the amount owed to the game developer. Therefore, the game developer’s ability and intent to pay the amounts withheld by the Company is not subject to significant judgment or collection risk. Certain of Skillz’ larger developer agreements provide the Company with a right to withhold additional amounts from their revenue share. These amounts relate to game-specific sales and marketing costs incurred by the Company, in its sole discretion, to acquire end-users on behalf of the game developer. The amount and timing of such withholding(s) is (are) uncertain and based on the future performance of the respective developer’s games. Such amounts are recorded as part of the monthly settlement process with the game developer. Accordingly, the Company has included these amounts as a reduction to the revenue share paid to game developers. Revenue is recognized at the time the performance obligation is satisfied by transferring control of the promised service in an amount that reflects the consideration that the Company expects to receive in exchange for the Monetization Services. The Company does not recognize contract assets or contract liabilities as the payment of the transaction price is concurrent with fulfillment of the services. At the time of game completion, the Company has a right to receive payment for services rendered. The Company’s agreements with game developers can generally be terminated for convenience by either party upon thirty days prior written notice, and in certain of the Company’s larger agreements, the game developer, if required by the Company, must continue to make its games available on the platform for a period of up to twelve months. The Company's agreements with certain game developers cannot be terminated by the developer without the Company's approval for a period of at least eighteen months under certain conditions. In accordance with optional exemptions available under Topic 606, the Company does not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less, and (2) contracts for which variable consideration relates entirely to an unsatisfied performance obligation or to an unsatisfied promise to transfer a distinct service that forms a part of a single performance obligation. Games provided by two developer partners accounted for 80% of the Company’s revenue from Monetization Services in the three months ended March 31, 2024 and 2023. End-User Incentive Programs To drive traffic to the platform, the Company provides promotions and incentives to end-users in various forms. Evaluating whether a promotion or incentive is a payment to a customer may require significant judgment. Promotions and incentives, which are consideration payable to customers, are recognized as a reduction of revenue at the later of when revenue is recognized or when the Company pays or promises to pay the incentive. Promotions and incentives recorded as sales and marketing expenses are recognized when we incur the related cost. Our primary end-user incentive is Bonus Cash, which is a promotional incentive that cannot be withdrawn and can only be used by end-users to enter paid-entry fee contests. Bonus Cash used as entry fees for paid Competitions can include newly issued Bonus Cash and / or Bonus Cash returned to end-users from prior winnings. We recognize the entire cost of Bonus Cash as sales and marketing expenses or a reduction of revenue (as discussed below). When Bonus Cash is used towards entry fees for a paid Competition and is returned to an end-user as winnings, we do not record any additional sales and marketing expenses or reductions to revenue. Likewise, if Bonus Cash is returned to an end-user and is used to enter subsequent competitions, which they continue to win, we do not record any additional sales and marketing expenses or reductions to revenue. • Marketing promotions and discounts accounted for as reductions to revenue. These promotions are typically pricing actions in the form of discounts that reduce end-user entry fees. These are offered on behalf of the game developers. Although not required based on the Company’s agreement with its game developers, the Company considers that game developers have a valid expectation that certain incentives will be offered to end-users. The determination of a valid expectation is based on an evaluation of all information reasonably available to game developers regarding the Company’s customary business practices, published policies and specific statements. An example of an incentive for which the game developer has a valid expectation is “Ticketz”, which are virtual currency earned for every competition played based on the amount of the entry fee. Ticketz can be redeemed for prizes, including Bonus Cash. Another promotional incentive is initial deposit Bonus Cash that can be earned in fixed amounts when an end-user makes their first deposit on the Skillz platform. Bonus Cash can only be applied by end-users towards future paid-entry fee competitions and cannot be withdrawn. • Marketing promotions accounted for as sales and marketing expenses. When the Company concludes that game developers do not have a valid expectation that an incentive will be offered, Management records the related cost as sales and marketing expenses. Management’s assessment is based on an evaluation of all information reasonably available to game developers regarding the Company’s customary business practices, published policies and specific statements. These promotions are offered to end-users to draw, re-engage, or generally increase their use of the Skillz platform. An example of this type of incentive is limited-time Bonus Cash offers, which are targeted to specific end-users, typically those who deposit more frequently or have not made a deposit recently, via email or in-app promotions. The Company targets groups of end-users differently, offering specific promotions it believes will best stimulate engagement. Similar to Bonus Cash earned from the redemption of Ticketz or an initial deposit, limited-time Bonus Cash can only be used by end-users to enter future paid entry fee competitions and cannot be withdrawn. The Company also hosts engagement marketing leagues, which run over a period of days or weeks. Prizes are awarded to winners in the form of cash or luxury goods to end-users earning the most medals at the end of the league. End-users accumulate medals by winning Skillz enabled paid entry fee competitions. Skillz determines whether (or not) to run a league, what prizes should be awarded, over what time period the league should run, and to which end-users’ prizes should be paid, all at the Company’s discretion. The parameters vary from one league to the next and are not reasonably known, nor communicated to game developers. League prizes in the form of cash can be withdrawn or applied towards future paid-entry fee competitions. From time to time, the Company issues credits or refunds to end-users that are dissatisfied by the level of service provided by the game developer. There is no contractual obligation for the Company to refund such end-users nor is there a valid expectation by game developers for the Company to issue such credits or refunds to end-users on their behalf. The Company accounts for credits or refunds, which are not recoverable from the game developer, as sales and marketing expenses when incurred. Advertising Revenue The Company offers a technology platform (i.e. demand side platform, “DSP”) to source available advertising space from its network of vendors / suppliers (aka, advertising exchange partners / publishers), which uses a real-time auction process. The revenue from advertising is recognized over time based on the number of impressions as the performance obligation is satisfied. The Company considers itself the agent of its customer(s). This is due to the Company’s involvement in programmatically placing and sourcing advertisements on behalf of customers via a network of third party publishers. The Company does not, at any time, take ownership of advertising inventory being sourced and placed. Via the DSP, if the Company wins the auction and an impression is served, the customer’s advertisement is displayed on the publisher / supplier’s mobile application. Management evaluates whether the performance obligation contained in its insertion order (“IO”) are distinct within the context of a customer contract as defined above. We determined the nature of our performance obligations to customers is to run their programmatic media campaigns by delivering advertisements to their target audience(s). This is carried out based on parameters and strategies outlined by the customer. This performance obligation to the customer incorporates the following: • The DSP and related services (i.e., development of campaign strategy, provision of creative services, campaign flighting, performance monitoring and serving of the ads); and • Sourcing mobile advertising space from the Company’s network of vendors / suppliers. None of these promises are separately identifiable from each other in the contract, as they are integrated with the DSP to provide the customer a combined output. That output empowers the customer to acquire the most valuable space for their mobile advertising campaign based on a pre-established / maximum budget in the IO. Our customers do not dictate where or how the Company sources advertising space. Likewise, the Company does not take ownership of any inventory before the mobile advertisement is served to the customer. The Company recognizes an asset for incremental costs of obtaining a contract with the customer as long as Management expects to recover these costs. Incremental costs are those that would have not been incurred if the contract did not exist. Examples of incremental costs often capitalized are sales commissions whereas examples of costs that would not be included are internal employee salaries, standard benefits, travel costs, and other / general legal costs. Sales commissions are the only incremental contract costs the Company incurs and are paid based on collected revenue based on the recipient’s assigned accounts. As commissions are typically satisfied within one year after an executed contract, the Company applies the practical expedient under ASC 340-40, Other Assets and Deferred Costs: Contracts with Customers. Maintenance Fee Revenue When a player becomes inactive on the platform by not participating in a tournament for six consecutive months, the Company will impose a monthly maintenance fee. This fee is charged to the player and recognized as revenue by the Company beginning from the first the month of inactivity.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash, commercial paper, money market funds and U.S government agency securities with maturities of three months or less when purchased.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash, cash equivalents, restricted cash, and marketable securities. Although the Company deposits its cash with multiple well-established financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. Marketable securities primarily consist of corporate debt securities, asset backed securities and debt instruments issued by foreign governments. The Company limits the amount of credit exposure to any one issuer and monitors the financial condition of the financial institutions on a regular basis.
Accounts Receivable, Net	Accounts Receivable, Net Accounts receivable, net, represents amounts recorded for programmatic media campaigns, net of an allowance for credit losses from our advertising revenue customers of our Aarki segment. The allowance for credit losses is recorded as an offset to accounts receivable and changes in such are classified as general and administrative expense in the condensed consolidated statements of operations and comprehensive loss. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when there are specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status and makes judgments about the creditworthiness of customers based on ongoing credit evaluations. The Company also considers customer-specific information, current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. The Company’s provision for credit losses were not material in the three months ended March 31, 2024 and 2023, respectively. The allowance for credit losses was $64.0 thousand and $49.0 thousand at March 31, 2024 and December 31, 2023, respectively. Two customers accounted for 18% and 14% of the accounts receivable balance as of March 31, 2024, respectively. One customer accounted for 12% of the accounts receivable balance as of December 31, 2023.
Fair Value Measurement	Fair Value Measurement The Company applies fair value accounting for financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the condensed consolidated financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which it would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 — Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 — Unobservable inputs reflecting management’s estimate of assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Certain financial instruments, including debt, are not measured at fair value on a recurring basis in the condensed consolidated balance sheets. The fair value of debt was estimated using primarily level 2 inputs, including quoted market prices or present value of future payments discounted by the market interest rates or the fixed rates based on current rates offered to the Company for debt with similar terms and maturities.
Long-Lived Assets	Long-Lived Assets Long-lived assets consist of property and equipment with estimable useful lives subject to depreciation and amortization. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. When impairment indicators are identified, the Company assesses its long-lived assets for impairment. Recoverability of an asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset or asset group. On March 15, 2023, the Company completed the purchase of an office building in Las Vegas, Nevada for $11.5 million, with $10.5 million and $1.0 million allocated to building and land components, respectively. The building will be depreciated on a straight-line basis over its estimated useful life of 39 years. The land is not subject to depreciation. The building is being utilized as the Company’s headquarters effective in February 2024.
Investments	Investments The Company considers all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year are classified as non-current marketable securities. Dividend and interest income are recognized when earned. Marketable securities are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in fair value, excluding credit losses and impairments, are recorded in other comprehensive income in the condensed consolidated statements of operations and comprehensive loss. Fair value is calculated based on publicly available market information or other estimates determined by management. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. To determine credit losses, the Company employs a systematic methodology that considers available quantitative and qualitative evidence. In addition, the Company considers specific adverse conditions related to the financial health of, and business outlook for, the investee. If the Company plans to sell the security or it is more likely than not that the Company will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in other income, net in the condensed consolidated statement of operations and comprehensive loss and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, the Company may incur future impairments. The Company has elected to measure its existing investments in non-marketable equity securities at cost, less impairments, with remeasurements to fair value only upon the occurrence of observable price changes in orderly transactions for the identical or similar securities of the same issuer (“measurement alternative”). This election is reassessed each reporting period to determine whether non-marketable equity securities have a readily determinable fair value, in which case they would no longer be eligible for this election and would be measured at fair value. The Company evaluates its non-marketable equity securities for impairment at each reporting period based on a qualitative assessment that considers various potential impairment indicators. Impairment indicators might include, but would not necessarily be limited to, a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee, a significant adverse change in the regulatory, economic, or technological environment of the investee, a bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar securities for an amount less than the carrying amount of the investments in those securities. If an impairment exists, a loss is recognized in the condensed consolidated statements of operations and comprehensive loss for the amount by which the carrying value exceeds the fair value of the investment. Gains and losses resulting from the remeasurement of non-marketable equity securities, including impairment, are recorded through other income, net in the condensed consolidated statements of operations and comprehensive loss. The Company separately presents investments in non-marketable equity securities within long-term assets on the condensed consolidated balance sheets. The Company identified an impairment indicator related to one of its investments in a privately held company. The Company reviewed the private company’s forecast and noted significant concerns about the private company’s ability to continue as a going concern. As a result, an impairment charge of $2.9 million was recorded in the year ended December 31, 2023.
Advertising and Promotional Expense	Advertising and Promotional Expense
Stock-Based Compensation	Stock-Based Compensation The Company measures and recognizes compensation expense for all stock-based awards based on estimated grant-date fair values recognized over the requisite service period. For awards that vest solely based on a service condition, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period. The compensation expense related to awards with performance conditions is recognized over the requisite service period when the performance conditions are probable of being achieved. The compensation expense related to awards with market conditions is recognized on an accelerated attribution basis over the requisite service period identified as the derived service period over which the market conditions are expected to be achieved and is not reversed if the market condition is not satisfied. See Note 11, Stock-Based Compensation, for more information. The Company accounts for forfeitures as they occur. If an employee stock-based award is canceled without the concurrent grant or offer of a replacement award, the cancellation is treated as a settlement for no consideration and any previously unrecognized compensation cost shall be recognized at the cancellation date. Stock-based awards granted to employees are primarily stock options and restricted stock units. The Company has primarily granted restricted stock units (“RSUs”), which have a service-based (and in certain circumstances, performance-based) vesting condition over a four-year period, to its employees and members of the Board of Directors since the start of 2021. The Board of Directors determines the fair value of each share of underlying common stock based on the closing price of the Company's common stock on the date of the grant. The Company has also issued equity awards in Aarki, Inc. (“Aarki”) to certain key employees of Aarki. See Note 5, Spin-Off Transaction. For awards with market conditions, the Company determines the grant date fair value utilizing a Monte Carlo valuation model, which incorporates various assumptions including expected stock price volatility, expected term, risk-free interest rates, expected date of a qualifying event, expected capital raise percentage and market capitalization milestones. Given the Company’s limited market trading history, it has estimated the volatility of its common stock on the date of grant of awards with market conditions based on the weighted average historical stock price volatility of comparable publicly-traded companies in its industry group. The Company estimated the expected term of its awards with market conditions based on various exercise scenarios, as these awards are not considered “plain vanilla.” The Company utilized a risk-free interest rate based on the U.S. Treasury yield curve in effect at the time of grant. The Company estimated the expected date of a qualifying event, the expected capital raise percentage and the expected achievement date of market capitalization milestones based on management’s expectations at the time of measurement of the award’s value.
Indirect Tax Liabilities	Indirect Tax Liabilities
Segments	Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. Effective beginning in the fourth quarter of 2023, the Company had two operating and reportable segments. See Note 14, Segment Reporting.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures ,” which requires public entities to disclose specific tax rate reconciliation categories, as well as income taxes paid disaggregated by jurisdiction, amongst other disclosure enhancements. The ASU is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments in this ASU should be applied on a prospective basis. Retrospective application is permitted. The Company is evaluating the impact of this ASU on its consolidated financial statements. In March 2024, the FASB issued ASU 2024-01, “ Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards,” which provides illustrative guidance to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of FASB Accounting Standards Codification (FASB ASC) 718, Compensation—Stock Compensation. ASU 2024-01 is effective for annual periods beginning after December 15, 2024 and interim periods within those annual periods with early adoption permitted. The Company currently expects that this ASU will not have a material impact on its consolidated financial statements . In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ,” which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The ASU is required to be applied retrospectively to all prior periods presented in the financial statements once adopted. The Company is evaluating the disclosure requirements related to the new standard.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Schedule of Cash, Cash Equivalents and Restricted Cash	March 31, December 31, 2024 2023 Cash $ 19,143 $ 14,968 Money market funds 271,458 287,060 Restricted cash 10,000 10,000 Cash, cash equivalents and restricted cash $ 300,601 $ 312,028
Schedule of Cash, Cash Equivalents and Restricted Cash	March 31, December 31, 2024 2023 Cash $ 19,143 $ 14,968 Money market funds 271,458 287,060 Restricted cash 10,000 10,000 Cash, cash equivalents and restricted cash $ 300,601 $ 312,028
Schedule of Interest Income (Expense), Net	Interest income (expense), net consisted of the following for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 2023 Interest expense $ (3,772) $ (9,152) Interest income 3,884 5,658 Interest income (expense), net $ 112 $ (3,494)

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following tables present the Company’s revenues, disaggregated by offering, geographical region, and reportable segment for the three months ended March 31, 2024 and 2023. Revenue by geographical region is based on the location where the game developer or advertising customer is headquartered. For more information on revenues presented by reportable segment, see Note 14, Segment Reporting. Three Months Ended March 31, 2024 Skillz Aarki Elimination Consolidated Revenue From Customers: Entry Fee Revenue $ 21,778 $ — $ — $ 21,778 Advertising Revenue — 2,865 (47) 2,818 Other Revenue: Maintenance Fee Revenue 639 — — 639 Total Revenue $ 22,417 $ 2,865 $ (47) $ 25,235 United States $ 21,511 $ 659 $ (47) $ 22,123 Other Countries 906 2,206 — 3,112 Total Revenue $ 22,417 $ 2,865 $ (47) $ 25,235 Three Months Ended March 31, 2023 Skillz Aarki Elimination Consolidated Revenue From Customers: Entry Fee Revenue $ 38,643 $ — $ — $ 38,643 Advertising Revenue — 4,513 (158) 4,355 Other Revenue: Maintenance Fee Revenue 1,385 — — 1,385 Total Revenue $ 40,028 $ 4,513 $ (158) $ 44,383 United States $ 37,332 $ 1,120 $ (158) $ 38,294 Other Countries 2,696 3,393 — 6,089 $ 40,028 $ 4,513 $ (158) $ 44,383

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Accounts Receivable	Note receivable included in other long-term assets on the condensed consolidated balance sheets consisted of the following as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 Note receivable $ 2,000 $ 2,000
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 Credit card processing reserve $ 1,000 $ 1,000 Prepaid expenses 3,809 4,364 Other current assets 1,106 1,357 Prepaid expenses and other current assets $ 5,915 $ 6,721
Schedule of Property and Equipment, Net	Property and equipment consisted of the following as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 Land $ 980 $ 980 Building 12,529 10,541 Capitalized internal-use software 9,113 9,113 Computer equipment and servers 1,782 1,410 Furniture and fixtures 329 278 Leasehold improvements 117 117 Construction in progress — 1,745 Total property and equipment 24,850 24,184 Accumulated depreciation and amortization (10,029) (9,635) Property and equipment, net $ 14,821 $ 14,549
Schedule of Property and Equipment, Net and Operating Lease Right-Of-Use Assets by Geographic Area	Property and equipment, net and operating lease right-of-use assets by geography was as follows: March 31, December 31, 2024 2023 United States $ 14,462 $ 14,186 Other countries 359 363 Total $ 14,821 $ 14,549
Schedule of Other Current Liabilities	Other current liabilities consisted of the following as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 Accrued sales and marketing expenses $ 2,430 $ 2,275 Accrued compensation 2,988 2,070 Accrued publisher fees 3,024 3,607 End-user liability, net 6,154 6,590 Accrued developer revenue share 1,037 1,086 Short-term lease obligations 779 831 Accrued legal expenses 7,625 7,949 Accrued interest expenses 3,877 554 Indirect tax liabilities 12,052 11,206 Accrued operating expenses 8,133 9,715 Other 755 899 Other current liabilities $ 48,854 $ 46,782

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	Assets measured at fair value on a recurring basis consisted of the following as of March 31, 2024 and December 31, 2023: Fair Value Measurements as of March 31, 2024 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 271,458 $ — $ — 271,458 Available-for-sale investments Asset-backed securities $ — $ 447 $ — 447 Total assets $ 271,458 $ 447 $ — $ 271,905 Fair Value Measurements as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 287,060 $ — $ — $ 287,060 Available-for-sale investments Asset-backed securities — 1,125 — 1,125 Total assets $ 287,060 $ 1,125 $ — $ 288,185

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Components of Investments	Investments consisted of the following as of March 31, 2024 and December 31, 2023: As of March 31, 2024 Adjusted Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities - Marketable Securities - Asset-backed securities $ 448 $ — $ (1) $ 447 $ — $ — $ 447 Money market funds 271,458 — — 271,458 271,458 — — Total investments $ 271,906 $ — $ (1) $ 271,905 $ 271,458 $ — $ 447 As of December 31, 2023 Adjusted Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities - Marketable Securities - Asset-backed securities $ 1,132 $ — $ (7) $ 1,125 $ — $ — $ 1,125 Money market funds 287,060 — — 287,060 287,060 — — Total investments $ 288,192 $ — $ (7) $ 288,185 $ 287,060 $ — $ 1,125
Schedule of Debt Investment Maturities	Adjusted Cost Basis Estimated Fair Value March 31, 2024 Due in one year or less $ — $ — Due after one year through five years 448 447 Total $ 448 $ 447

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consisted of the following as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 2021 Senior Secured Notes, non-current $ 129,671 $ 129,671 Unamortized discount and issuance costs (5,326) (5,736) Long-term debt, non-current $ 124,345 $ 123,935
Schedule of Maturities	The following table outlines maturities of the principle related to the Company’s long-term debt as of March 31, 2024: Amount 2023 $ — 2024 — 2025 — 2026 129,671 Total $ 129,671

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Summary of Stock-Based Compensation Expense	The following table summarizes stock-based compensation expense recognized for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Cost of revenue $ 2 $ — Research and development 147 1,206 Sales and marketing 2,011 1,904 General and administrative 6,580 7,438 Total stock-based compensation expense $ 8,740 $ 10,548
Summary of Stock Option and RSU Activity	Stock option and RSU activity during the three months ended March 31, 2024 is as follows (in thousands, except for share, per share, and contractual term data): Options Outstanding Restricted Stock Units Number of Number of Weighted- Weighted- Aggregate Number of Plan shares outstanding Weighted-Average Grant Date Fair Value per share Balance at December 31, 2023 2,152,407 701,833 $ 303.73 6.95 $ 91 2,497,773 $ 14.93 Additional shares authorized 903,395 — — Granted (300,743) — — 300,743 6.36 Exercised/Vested — (552) 3.07 (63,805) 27.53 Cancelled/Forfeited/Expired 418,532 (4,308) 15.32 (414,224) 18.25 Balance at March 31, 2024 3,173,591 696,973 $ 305.75 6.71 $ 94 2,320,487 $ 12.88 Exercisable at December 31, 2023 98,469 $ 9.52 4.56 $ 90 Exercisable at March 31, 2024 95,745 9.60 4.30 93 Unvested at December 31, 2023 603,364 351.75 6.95 1 Unvested at March 31, 2024 601,228 352.92 6.71 1

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Segment Information	The following tables provide summarized information about the Company’s operations by reportable segment and a reconciliation of Segment Adjusted EBITDA to Net Loss in the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 2023 Revenue Skillz Segment $ 22,417 $ 40,028 Aarki Segment 2,865 4,513 Elimination (47) (158) Total Revenue $ 25,235 $ 44,383 Segment Adjusted EBITDA Skillz Segment $ (15,691) $ (19,682) Aarki Segment (2,045) (1,212) Total Segment Adjusted EBITDA $ (17,736) $ (20,894) Items to reconcile Segment Adjusted EBITDA to Net Loss: Interest income (expense), net $ 112 $ (3,494) Stock-based compensation (8,740) (10,548) Change in fair value of warrant liability 9 (1) Provision for income taxes (38) (69) Depreciation and amortization (395) (626) Other income, net 65 39 Net Loss $ (26,723) $ (35,593)

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Loss Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted loss per Class A common stock and Class B common stock (in thousands, except for share and per share data): Three Months Ended March 31, 2024 2023 Numerator: Net loss – basic and diluted $ (26,723) $ (35,593) Denominator: Weighted average common shares outstanding – basic and diluted 18,461,221 20,883,293 Net loss per share attributable to common stockholders – basic and diluted $ (1.45) $ (1.70)
Schedule of Antidilutive Securities Excluded from Computation of Loss Per Share	The following outstanding common stock equivalents were considered antidilutive, and therefore, excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented (share numbers are not in thousands). As of March 31, 2024 2023 Common stock warrants 226,786 226,786 Common stock options 696,973 992,954 Performance stock units 567,604 — Restricted stock units 2,320,487 2,650,360 Total 3,811,850 3,870,100

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands		3 Months Ended			9 Months Ended	12 Months Ended
	Mar. 15, 2023 USD ($)	Mar. 31, 2024 USD ($) segment	Dec. 31, 2023 USD ($) segment	Mar. 31, 2023 USD ($)	Sep. 30, 2023 segment	Dec. 31, 2023 USD ($)
Concentration Risk [Line Items]
Restricted cash		$ 10,000	$ 10,000			$ 10,000
Allowance for credit losses		64	$ 49			49
Payment to acquire building	$ 11,500
Long-lived asset impairment						$ 2,900
Advertising costs		$ 6,000		$ 8,800
Number of operating segments | segment		2	2
Number of reportable segments | segment		2	2		1
Office space
Concentration Risk [Line Items]
Payment to acquire building	10,500
Useful life		39 years
Land
Concentration Risk [Line Items]
Payment to acquire building	$ 1,000
Restricted stock units
Concentration Risk [Line Items]
Vesting period		4 years
Two Developers | Revenue | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage (less than)		80%		80%
Customer One | Accounts Receivable | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage (less than)		18%				12%
Customer Two | Accounts Receivable | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage (less than)		14%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Cash	$ 19,143	$ 14,968
Money market funds	271,458	287,060
Restricted cash	10,000	10,000
Cash, cash equivalents and restricted cash	$ 300,601	$ 312,028	$ 418,249	$ 365,436

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Interest Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accounting Policies [Abstract]
Interest expense	$ (3,772)	$ (9,152)
Interest income	3,884	5,658
Interest income (expense), net	$ 112	$ (3,494)

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 25,235	$ 44,383
Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenue	(47)	(158)
Skillz | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	22,417	40,028
Aarki | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	2,865	4,513
United States
Disaggregation of Revenue [Line Items]
Revenue	22,123	38,294
United States | Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenue	(47)	(158)
United States | Skillz | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	21,511	37,332
United States | Aarki | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	659	1,120
Other Countries
Disaggregation of Revenue [Line Items]
Revenue	3,112	6,089
Other Countries | Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenue	0	0
Other Countries | Skillz | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	906	2,696
Other Countries | Aarki | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	2,206	3,393
Entry Fee Revenue
Disaggregation of Revenue [Line Items]
Revenue	21,778	38,643
Entry Fee Revenue | Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenue	0	0
Entry Fee Revenue | Skillz | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	21,778	38,643
Entry Fee Revenue | Aarki | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	0	0
Advertising Revenue
Disaggregation of Revenue [Line Items]
Revenue	2,818	4,355
Advertising Revenue | Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenue	(47)	(158)
Advertising Revenue | Skillz | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	0	0
Advertising Revenue | Aarki | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	2,865	4,513
Maintenance Fee Revenue
Disaggregation of Revenue [Line Items]
Revenue	639	1,385
Maintenance Fee Revenue | Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenue	0	0
Maintenance Fee Revenue | Skillz | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	639	1,385
Maintenance Fee Revenue | Aarki | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	$ 0	$ 0

Revenue - Narrative (Details)

Revenue - Narrative (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Two Developers | Revenue | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage (less than)	80%	80%

Balance Sheet Components - Note

Balance Sheet Components - Notes Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note receivable	$ 2,000	$ 2,000

Balance Sheet Components - Narr

Balance Sheet Components - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
	Jul. 07, 2023	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, nonaccrual, interest income		$ 100
Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note receivable		$ 2,000	$ 2,000
Big Run Studios | Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note receivable	$ 2,000
Financing receivable, designated rate	11.50%
Financing receivable, extended interest period	6 months
Financing receivable, default rate	16.50%
Financing receivable, late charge rate	5%
Financing receivable, payment amount overdue, number of days	5 years

Balance Sheet Components - Prep

Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Credit card processing reserve	$ 1,000	$ 1,000
Prepaid expenses	3,809	4,364
Other current assets	1,106	1,357
Prepaid expenses and other current assets	$ 5,915	$ 6,721

Balance Sheet Components - Prop

Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 24,850	$ 24,184
Accumulated depreciation and amortization	(10,029)	(9,635)
Property and equipment, net	14,821	14,549
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	980	980
Building
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	12,529	10,541
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	9,113	9,113
Computer equipment and servers
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,782	1,410
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	329	278
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	117	117
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 0	$ 1,745

Balance Sheet Components - Pr_2

Balance Sheet Components - Property and Equipment, Net and Operating Lease Right-Of-Use Assets by Geographic Area (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 14,821	$ 14,549
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	14,462	14,186
Other Countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 359	$ 363

Balance Sheet Components - Othe

Balance Sheet Components - Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued sales and marketing expenses	$ 2,430	$ 2,275
Accrued compensation	2,988	2,070
Accrued publisher fees	3,024	3,607
End-user liability, net	6,154	6,590
Accrued developer revenue share	1,037	1,086
Short-term lease obligations	779	831
Accrued legal expenses	7,625	7,949
Accrued interest expenses	3,877	554
Indirect tax liabilities	12,052	11,206
Accrued operating expenses	8,133	9,715
Other	755	899
Other current liabilities	$ 48,854	$ 46,782

Spin-Off Transaction (Details)

Spin-Off Transaction (Details) - USD ($) $ in Millions	Aug. 31, 2023	Dec. 20, 2021
Senior Secured Notes, 2021 | Senior Notes
Subsidiary or Equity Method Investee [Line Items]
Interest rate	10.25%	10.25%
Aarki | Spinoff | Series A Preferred Stock
Subsidiary or Equity Method Investee [Line Items]
Subsidiary, investment for working capital	$ 5
Aarki | Stock Options And Restricted Stock Awards | Spinoff
Subsidiary or Equity Method Investee [Line Items]
Subsidiary, ownership percentage, noncontrolling owner	20%

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets:
Cash and Cash Equivalents	$ 271,458	$ 287,060
Asset-backed securities
Assets:
Cash and Cash Equivalents	0	0
Fair Value, Recurring
Assets:
Total assets	271,905	288,185
Fair Value, Recurring | Money market funds
Assets:
Cash and Cash Equivalents	271,458	287,060
Fair Value, Recurring | Asset-backed securities
Assets:
Available-for-sale investments	447	1,125
Level 1 | Fair Value, Recurring
Assets:
Total assets	271,458	287,060
Level 1 | Fair Value, Recurring | Money market funds
Assets:
Cash and Cash Equivalents	271,458	287,060
Level 1 | Fair Value, Recurring | Asset-backed securities
Assets:
Available-for-sale investments	0	0
Level 2 | Fair Value, Recurring
Assets:
Total assets	447	1,125
Level 2 | Fair Value, Recurring | Money market funds
Assets:
Cash and Cash Equivalents	0	0
Level 2 | Fair Value, Recurring | Asset-backed securities
Assets:
Available-for-sale investments	447	1,125
Level 3 | Fair Value, Recurring
Assets:
Total assets	0	0
Level 3 | Fair Value, Recurring | Money market funds
Assets:
Cash and Cash Equivalents	0	0
Level 3 | Fair Value, Recurring | Asset-backed securities
Assets:
Available-for-sale investments	$ 0	$ 0

Investments - Components of Inv

Investments - Components of Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost Basis	$ 271,906	$ 288,192
Unrealized Gains	0	0
Unrealized Losses	(1)	(7)
Fair Value	271,905	288,185
Cash and Cash Equivalents	271,458	287,060
Marketable securities, current	0	0
Marketable Securities - Non-current	447	1,125
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost Basis	448	1,132
Unrealized Gains	0	0
Unrealized Losses	(1)	(7)
Fair Value	447	1,125
Cash and Cash Equivalents	0	0
Marketable securities, current	0	0
Marketable Securities - Non-current	447	1,125
Money market funds
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost Basis	271,458	287,060
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	271,458	287,060
Cash and Cash Equivalents	271,458	287,060
Marketable securities, current	0	0
Marketable Securities - Non-current	$ 0	$ 0

Investments - Narrative (Detail

Investments - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Non-marketable equity securities	$ 52,768	$ 52,768
Long-lived asset impairment	$ 2,900

Investments - Maturities (Detai

Investments - Maturities (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Adjusted Cost Basis
Due in one year or less	$ 0
Due after one year through five years	448
Total	448
Estimated Fair Value
Due in one year or less	0
Due after one year through five years	447
Total	$ 447

Long-Term Debt - Schedule of De

Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Long-Term Debt, Non-current
2021 Senior Secured Notes, non-current	$ 129,671
Unamortized discount and issuance costs	(5,326)	$ (5,736)
Long-term debt, non-current	124,345	123,935
Senior Secured Notes, 2021
Long-Term Debt, Non-current
2021 Senior Secured Notes, non-current	$ 129,671	$ 129,671

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($)			3 Months Ended
	Apr. 13, 2023	Sep. 01, 2022	Mar. 31, 2024	Mar. 31, 2023	Aug. 31, 2023	Dec. 31, 2021	Dec. 20, 2021
Debt Instrument [Line Items]
Accretion of unamortized debt discount and amortization of debt issuance costs			$ 410,000	$ 837,000
Senior Notes | Senior Secured Notes, 2021
Debt Instrument [Line Items]
Face amount						$ 129,700,000	$ 300,000,000
Interest rate					10.25%		10.25%
Effective interest rate			12.09%				12.14%
Repurchased face amount		$ 10,500,000
Redemption price		69.50%
Debt instrument, repurchase amount	$ 159,800,000	$ 7,300,000
Accrued interest		200,000
Gain (Loss) on extinguishment of debt	$ 15,200,000	$ 2,600,000
Debt term			5 years
Fair value			$ 108,600,000

Long-Term Debt - Maturities (De

Long-Term Debt - Maturities (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2023	$ 0
2024	0
2025	0
2026	129,671
Total	$ 129,671

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($) $ in Millions		1 Months Ended
	Apr. 08, 2024	Apr. 30, 2022	Sep. 30, 2021	Mar. 31, 2024	Dec. 31, 2023
Other Commitments [Line Items]
Damages awarded		$ 4.4	$ 11.6
Loss contingency accrual			$ 7.1
Sales and excise tax payable				$ 12.1	$ 11.2
Subsequent Event
Other Commitments [Line Items]
Damages awarded	$ 6.7
Additional damages awarded, value	$ 2.3

Share Repurchase Program - Narr

Share Repurchase Program - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Aug. 18, 2023
Equity, Class of Treasury Stock [Line Items]
Authorized repurchase amount			$ 65
Common stock
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares)	1.2	2.3
Shares repurchased, price per share (in dollars per share)	$ 5.76	$ 5.62
Treasury stock, value, acquired, cost method	$ 7	$ 13

Stock Based Compensation - Stoc

Stock Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 8,740	$ 10,548
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	2	0
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	147	1,206
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	2,011	1,904
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 6,580	$ 7,438

Stock Based Compensation - Narr

Stock Based Compensation - Narrative (Details)		1 Months Ended		3 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($)	Jun. 30, 2021	Dec. 31, 2020 USD ($) installment $ / shares shares	Mar. 31, 2024 USD ($) $ / shares shares	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) vestingPeriod shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of stock outstanding			5%
Unrecognized stock-based compensation expense				$ 48,000,000
Unrecognized stock-based compensation expense, period for recognition				2 years 7 months 6 days
Stock-based compensation expense				$ 8,740,000	$ 10,548,000
Granted (in dollars per share) | $ / shares				$ 0
Restricted stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				1 year
Restricted stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				8 years
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) | shares				600,000
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				4 years
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, maximum purchase value				$ 25,000
Purchase price of common stock, percentage of fair market value		85%
2020 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period			10 years
Vesting period			1 year
Shares authorized (in shares) | shares			6,465,771
2020 Omnibus Incentive Plan | Common Class A and B
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares			750,000
2020 Omnibus Incentive Plan | Class A common stock, par value $0.0001 per share
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares			4,597,406
2020 Omnibus Incentive Plan | Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares			1,118,365
2022 CFO Restricted Stock Unit and Performance Award | Chief Financial Officer | Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted amount						$ 5,000,000
Granted (in shares) | shares						200,000
2022 CFO Restricted Stock Unit and Performance Award | Chief Financial Officer | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted amount	$ 10,700,000					$ 15,000,000
Granted (in shares) | shares						500,000
Vesting percentage						25%
Stock-based compensation expense				300,000
2022 CFO Restricted Stock Unit and Performance Award | Chief Executive Officer | Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted amount						$ 8,600,000
Granted (in shares) | shares						500,000
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Chief Financial Officer | Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of vesting periods | vestingPeriod						4
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Chief Financial Officer | Performance stock units | Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Chief Financial Officer | Performance stock units | Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Chief Financial Officer | Performance stock units | Tranche three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Chief Financial Officer | Performance stock units | Tranche four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Chief Executive Officer | Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of vesting periods | vestingPeriod						4
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Chief Executive Officer | Performance stock units | Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Chief Executive Officer | Performance stock units | Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Chief Executive Officer | Performance stock units | Tranche three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Chief Executive Officer | Performance stock units | Tranche four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Chief Executive Officer | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense				$ 9,700,000
Unrecognized stock-based compensation expense, period for recognition				3 years 8 months 12 days
Granted amount						$ 25,900,000
Granted (in shares) | shares						1,400,000
Vesting percentage						25%
Stock-based compensation expense				$ 900,000
Option Agreements
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense				$ 29,500,000
Unrecognized stock-based compensation expense, period for recognition				1 year 7 months 13 days
Stock-based compensation expense				$ 4,800,000
Number of installments | installment			3
Options, grant date fair value			$ 93,400,000
Option Agreements | Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				33.33%
Trading day period			10 days
Volume weighted average price multiplier			300%
Option Agreements | Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				33.33%
Volume weighted average price multiplier			400%
Option Agreements | Tranche three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				33.33%
Volume weighted average price multiplier			500%
Option Agreements | Class A common stock, par value $0.0001 per share | Chief Strategy Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares			102,000
Granted (in dollars per share) | $ / shares			$ 353.60
Option Agreements | Class B Common Stock | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares			498,000

Stock Based Compensation - St_2

Stock Based Compensation - Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Number of Shares Available for Issuance Under the Plan
Beginning balance (in shares)	2,152,407
Additional shares authorized (in shares)	903,395
Granted (in shares)	(300,743)
Cancelled/Forfeited/Expired (in shares)	418,532
Ending balance (in shares)	3,173,591	2,152,407
Number of Shares Outstanding Under the Plan
Beginning balance (in shares)	701,833
Granted (in shares)	0
Exercised/Vested (in shares)	(552)
Cancelled/Forfeited/Expired (in shares)	(4,308)
Ending balance (in shares)	696,973	701,833
Exercisable (in shares)	95,745	98,469
Unvested (in shares)	601,228	603,364
Weighted- Average Exercise Price
Beginning balance (in dollars per share)	$ 303.73
Granted (in dollars per share)	0
Exercised/Vested (in dollars per share)	3.07
Cancelled/Forfeited/Expired (in dollars per share)	15.32
Ending balance (in dollars per share)	305.75	$ 303.73
Exercisable (in dollars per share)	9.60	9.52
Unvested (in dollars per share)	$ 352.92	$ 351.75
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value
Options outstanding, weighted-average remaining contractual term	6 years 8 months 15 days	6 years 11 months 12 days
Exercisable, weighted-average remaining contractual term	4 years 3 months 18 days	4 years 6 months 21 days
Unvested, weighted-average remaining contractual term	6 years 8 months 15 days	6 years 11 months 12 days
Options outstanding, aggregate intrinsic value	$ 94	$ 91
Exercisable, aggregate intrinsic value	93	90
Unvested, aggregate intrinsic value	$ 1	$ 1
Restricted stock units
Number of Plan shares outstanding
Beginning balance (in shares)	2,497,773
Granted (in shares)	300,743
Exercised/Vested (in shares)	(63,805)
Cancelled/Forfeited/Expired (in shares)	(414,224)
Ending balance (in shares)	2,320,487	2,497,773
Weighted-Average Grant Date Fair Value per share
Beginning balance (in dollars per share)	$ 14.93
Granted (in dollars per share)	6.36
Exercised/Vested (in dollars per share)	27.53
Cancelled/Forfeited/Expired (in dollars per share)	18.25
Ending balance (in dollars per share)	$ 12.88	$ 14.93

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 38,000	$ 69,000
Effective tax rate	(20.00%)	(20.00%)

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details) ad_request in Millions, device in Billions	3 Months Ended		9 Months Ended
	Mar. 31, 2024 segment ad_request device	Dec. 31, 2023 segment	Sep. 30, 2023 segment
Segment Reporting [Abstract]
Number of operating segments	2	2
Number of reportable segments	2	2	1
Number of mobile ad requests per second | ad_request	5
Number of devices | device	10

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Revenue	$ 25,235,000	$ 44,383,000
Total Segment Adjusted EBITDA	(17,736,000)	(20,894,000)
Interest income (expense), net	112,000	(3,494,000)
Stock-based compensation	(8,740,000)	(10,548,000)
Change in fair value of common stock warrant liabilities	9,000	(1,000)
Provision for income taxes	(38,000)	(69,000)
Depreciation and amortization	(395,000)	(626,000)
Other income, net	(65,000)	(39,000)
Net loss	(26,723,000)	(35,593,000)
Advertising Revenue
Segment Reporting Information [Line Items]
Revenue	2,818,000	4,355,000
Intersegment Eliminations
Segment Reporting Information [Line Items]
Revenue	(47,000)	(158,000)
Intersegment Eliminations | Advertising Revenue
Segment Reporting Information [Line Items]
Revenue	(47,000)	(158,000)
Skillz | Operating Segments
Segment Reporting Information [Line Items]
Revenue	22,417,000	40,028,000
Total Segment Adjusted EBITDA	(15,691,000)	(19,682,000)
Skillz | Operating Segments | Advertising Revenue
Segment Reporting Information [Line Items]
Revenue	0	0
Aarki | Operating Segments
Segment Reporting Information [Line Items]
Revenue	2,865,000	4,513,000
Total Segment Adjusted EBITDA	(2,045,000)	(1,212,000)
Aarki | Operating Segments | Advertising Revenue
Segment Reporting Information [Line Items]
Revenue	$ 2,865,000	$ 4,513,000

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net loss – basic	$ (26,723)	$ (35,593)
Net loss – diluted	$ (26,723)	$ (35,593)
Denominator:
Weighted average common shares outstanding - basic (in shares)	18,461,221	20,883,293
Weighted average common shares outstanding - diluted (in shares)	18,461,221	20,883,293
Net loss per share attributable to common stockholders – basic (in dollars per share)	$ (1.45)	$ (1.70)
Net loss per share attributable to common stockholders - diluted (in dollars per share)	$ (1.45)	$ (1.70)

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive Shares (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	3,811,850	3,870,100
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	226,786	226,786
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	696,973	992,954
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	567,604	0
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	2,320,487	2,650,360

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands

1 Months Ended

3 Months Ended

12 Months Ended

Aug. 15, 2024

May 20, 2024

Apr. 13, 2024

Apr. 08, 2024

Feb. 09, 2024

Apr. 30, 2022

Sep. 30, 2021

Mar. 31, 2024

Dec. 31, 2023

Apr. 12, 2024

Aug. 18, 2023

Jul. 07, 2023

Subsequent Event [Line Items]

Damages awarded

$ 4,400

$ 11,600

Common stock, par value (in dollars per share)

$ 0.0001

$ 0.0001

$ 0.0001

Authorized repurchase amount

$ 65,000

Skillz vs AviaGames

Subsequent Event [Line Items]

Damages awarded

$ 42,900

Subsequent Event

Subsequent Event [Line Items]

Decrease in litigation expense

$ 3,500

Damages awarded

$ 6,700

Subsequent Event | Skillz vs AviaGames

Subsequent Event [Line Items]

Loss contingency, damages paid, value

$ 46,000

Proceeds from royalties received, annual amount expected

$ 7,500

Royalty payment period

4 years

Subsequent Event | Skillz, Big Run vs AviaGames

Subsequent Event [Line Items]

Litigation settlement, amount awarded from other party

$ 80,000

Loss contingency, damages paid, value

50,000

Subsequent Event | Big Run vs AviaGames

Subsequent Event [Line Items]

Loss contingency, damages paid, value

$ 4,000

Common stock

Subsequent Event [Line Items]

Shares repurchased (in shares)

1,200,000

2,300,000

Shares repurchased, price per share (in dollars per share)

$ 5.76

$ 5.62

Treasury stock, value, acquired, cost method

$ 7,000

$ 13,000

Common stock | Forecast

Subsequent Event [Line Items]

Shares repurchased (in shares)

4,100,000

Shares repurchased, price per share (in dollars per share)

$ 5.78

Treasury stock, value, acquired, cost method

$ 23,900

Notes Receivable

Subsequent Event [Line Items]

Note receivable

$ 2,000

$ 2,000

Big Run Studios | Notes Receivable

Subsequent Event [Line Items]

Note receivable

$ 2,000

Big Run Studios | Notes Receivable | Subsequent Event

Subsequent Event [Line Items]

Note receivable

$ 2,000